Apollo Global Management Inc. has reportedly offered to invest up to $5 billion in Intel Corp., signaling confidence in the chipmaker’s ongoing transformation efforts. The proposal would represent a major equity-like investment in Intel, which is currently exploring the offer. Discussions are still in progress, and no final decisions have been made, with the possibility that talks could fall through.
This potential investment comes as Intel, under CEO Pat Gelsinger, works on an expensive turnaround strategy to develop new products, technology, and attract external customers. The initiative has, however, been marred by disappointing earnings, impacting Intel’s market value.
Apollo has a history with Intel, having acquired a stake in a joint venture controlling an Intel plant in Ireland earlier this year for $11 billion. The firm has also made previous investments in the chipmaking industry, including a $900 million investment in Western Digital Corp. last year.