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

The investment will make SoftBank Intel’s fifth biggest investor, with the conglomerate paying $23 per share of Intel common stock. Lip-Bu Tan, Intel’s CEO, said in a statement that he “appreciate (s) the confidence (SoftBank) has placed in Intel with this investment.”

Intel stock was rising on the investment from SoftBank, which could bring a major chip-manufacturing customer alongside an injection of funds.

Softbank owns a majority stake in Arm. Arm-based chips dominate the smartphone market, and they're starting to compete with Intel in PCs and servers as well. Arm doesn't sell chips directly, instead licensing its designs and intellectual property to companies including Apple, Nvidia, Qualcomm, and many others.

Intel is getting a $2 billion lifeline from Japan's SoftBank, the companies announced Monday after signing a definitive securities purchase agreement.

The move could signal SoftBank’s chip ambitions, as the company may be gearing up to build Arm CPU tiles, AI XPUs, and Ampere chips tied to the Stargate Project.

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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,