Apollo Considers $5 Billion Investment In Intel As Qualcomm Explores Acquisition

Apollo Global Management is reportedly considering a substantial investment of up to $5 billion in Intel, according to Bloomberg. This potential capital injection comes at a challenging time for Intel, once the leading name in global chip manufacturing, whose stock has tumbled by nearly 60 percent this year.

Apollo’s approach suggests an interest in an equity-like investment, as indicated by sources familiar with the discussions. Intel’s management is still evaluating the proposal, and as negotiations are in the preliminary phase, the outcome remains uncertain. The size of the investment could shift, and there is no guarantee the talks will lead to a deal. Both Apollo and Intel have declined to comment, with Apollo also not responding to inquiries from Reuters.

This development follows Apollo’s earlier deal to acquire a 49 percent stake in a joint venture with Intel, related to a manufacturing facility in Ireland, valued at $11 billion. In parallel, Qualcomm has also expressed interest in Intel, reportedly exploring a potential acquisition. Qualcomm’s CEO, Cristiano Amon, is personally involved in these early-stage negotiations, aiming to position Qualcomm as a more significant player in the semiconductor industry.

With both Apollo and Qualcomm circling Intel, the once-mighty chipmaker faces a crucial juncture, as these talks could signal a major transformation in the sector. This comes at a time when Intel is preparing to launch its next-generation Lunar Lake processors, which aim to address efficiency and performance concerns around its recent chips and take on Qualcomm’s new foray into the PC chip market.

Intel has also secured $3 billion from the US government to make chipsets which are critical for national security and  closed a deal for making exclusive semiconductors for Amazon’s cloud business.