Intel Invites Investment Interest from iPhone Icon Apple
Intel, the struggling American chipmaker, has sought investment from Apple, according to a Bloomberg report cited by Reuters.
The report stated that preliminary discussions have taken place between Apple, the maker of the iPhone, and Intel about working more closely together. However, no deal has been finalized yet. Following the news, Intel’s shares rose by 6 percent.
Intel’s move comes at a time when Nvidia announced an investment of nearly $5 billion to acquire about 4 percent of Intel’s shares. Earlier, the U.S. government also pledged $10 billion in support through the purchase of 10 percent of Intel’s shares. Additionally, Japan’s SoftBank invested $2 billion in the company last month.
Once considered the symbol of Silicon Valley, Intel has fallen behind competitors like Nvidia and AMD in the artificial intelligence race. The company’s new CEO, Lip-Bu Tan, is seeking partners as part of efforts to revive the business.
For Apple, such an investment could symbolize renewed confidence in Intel. Before switching to its own chips in 2020, Apple had long been one of Intel’s major customers.
At present, Apple is largely reliant on Taiwan’s TSMC for its chip supply. A partnership with Intel could help Apple diversify its supply chain, especially as geopolitical risks surrounding Taiwan continue to grow.
