Shares in the chip maker rose following news of SoftBank’s planned investment and a possible stake for the U.S. government.

Shining a Spotlight on Intel Intel (NASDAQ:INTC) has emerged from the shadows of its semiconductor rivals, capturing the attention of investors and policymakers alike. After years of struggling to keep pace with competitors like Nvidia (NASDAQ:NVDA) and Taiwan Semiconductor Manufacturing (NYSE:TSM),

Intel is getting a $2 billion investment in common stock from SoftBank, which is betting big on the AI revolution.

The industry looks very different from when Intel was the clear leader. Nvidia and AMD dominate AI and data centers, while TSMC is the dominant foundry. Intel is now cast as the underdog.

The U.S. chipmaker has struggled to keep pace in the AI market alongside competitors like Nvidia. Softbank has agreed to buy Intel common stock at $23 per share.

A new partner to Foxconn's AI venture in Lordstown, Japanese investment firm SoftBank, has also announced a $2 billion investment in semiconductor giant Intel.

The two companies said SoftBank's stake in Intel was a bet on the growing market for artificial intelligence, which Intel has struggled to serve.

The move is part of SoftBank's investing initiatives in the US, which also includes commitments towards AI computing. Intel, which has lagged behind in the chip race after being the erstwhile market leader,