Apollo Global Management reportedly offered to invest up to $5 billion in chipmaker Intel.
Intel executives are considering the proposal, Bloomberg reported Monday (Sept. 23), citing unnamed sources.
The size of the potential investment could change, or the talks could come to nothing, according to the report.
Neither Apollo Global Management nor Intel immediately replied to PYMNTS’ request for comment.
The investment would provide Intel with an alternative to a potential takeover by rival chipmaker Qualcomm, which has floated the idea of a friendly takeover, per the report.
Apollo and Intel have an existing relationship, following Apollo’s June purchase of an $11 billion stake in a joint venture that controls a chip plant in Ireland, according to the report.
Intel’s sales have been shrinking, and its shares have lost half their value this year, the report said.
The shares rose last week after Intel CEO Pat Gelsinger announced a deal with Amazon Web Services (AWS) to co-invest in a custom artificial intelligence semiconductor, a plan to turn Intel’s manufacturing business into a wholly owned subsidiary, and a pause to plans to build new factories in Germany and Poland, per the report.
A combination of Intel with Qualcomm or another competitor would likely face regulatory scrutiny, according to the report.
It was reported Friday (Sept. 20) that Qualcomm initiated discussions with Intel about a potential acquisition. The talks were in their early stages, and Qualcomm has not submitted a formal offer.
If the acquisition attempt moves forward, it could mark one of the largest in tech history. In 2018, chipmaker Broadcom sought to acquire Qualcomm for $142 billion, but that deal was ultimately blocked by then-President Donald Trump due to national security concerns.
In June, Intel introduced a next-generation AI chip, the Xeon 6 processor, promising a combination of enhanced performance and power efficiency to tackle the demands of data center workloads.
“AI is driving one of the most consequential eras of innovation the industry has ever seen,” Gelsinger said at the time. “The magic of silicon is once again enabling exponential advancements in computing that will push the boundaries of human potential and power the global economy for years to come.”
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