After Nvidia, Softbank and US government, struggling chipmaker Intel may get another lifeline from Apple

Struggling chipmaker Intel has reportedly held talks with Apple about a potential investment to improve its financial position, reports Bloomberg. Citing people familiar with the matter, the report said Apple and Intel also have discussed how to work more closely together. However, the talks are in an early stage and may not lead to an agreement, the report added. The news comes days after Nvidia announced plans to invest $5 billion in Intel, purchasing stock at $23.28 per share—a 6.5% discount. Weeks earlier, the chip company received a $2 billion investment from SoftBank – a majority owner of British chip design company Arm.


Notably, Apple has been a longtime customer of Intel. The iPhone maker switched to its in-house chips in the past five years which are now produced by partner Taiwan Semiconductor Manufacturing Co. (TSMC). The Bloomberg report adds that it is unlikely that Apple would switch back to Intel processors in its devices.

Intel’s desperate attempts to make a comeback

Once a leading chip manufacturer, Intel now faces strong competition from Nvidia. It owns only a fraction of Nvidia’s sales and market capitalization. Intel has been trying to make a comeback with multiple partnerships, including 10% stake sale to the US government. Last week, Nvidia announced to invest $5 billion in Intel, 20 years after the company rejected to buy Nvidia for $20 billion.


Intel has also struggled to capitalize on booming sales of artificial intelligence (AI) chips. The chipmaker has also desperately chased the AI wave through acquisitions like Nervana Systems ($400 million) and Habana Labs ($2 billion), but gained little ground against Nvidia's dominance.


Earlier this year, the company appointed Lip-Bu Tan as the new CEO replacing the ousted Pat Gelsinger. Tan has admitted that Intel won't compete with Nvidia's high-end systems "anytime soon."


Intel shares rose 6.4% to $31.22 on Wednesday in New York after the Bloomberg report.