Apollo Considering $5 Billion Investment in Intel

Apollo Global Management, the U.S.-based asset management company, is mulling a $5 billion investment into Intel.

That's according to Bloomberg News, citing people familiar with the matter.

The potential Intel investment offer arrives at a time when the chipmaking giant is struggling. The company's stock price has dropped a whopping 60% this year. Intel's leadership is considering the offer, Bloomberg reports, but the talks are preliminary.

Intel declined to comment to Bloomberg's inquiry, and Apollo has not responded to requests for comment.

Apollo has been eyeing Intel's assets for a while. It offered to acquire a 49% equity interest in a joint venture connected to Intel's newly established Ireland manufacturing facility for $11 billion.

Apollo isn't the only company with eyes for Intel. Broadcom has considered its own proposal. According to the Wall Street Journal, the company recently approached Intel, although a deal is "far from certain" and the discussions may have already ended. Qualcomm has also approached Intel about a potential deal, according to Bloomberg.

Why a Intel Investment After 2024

Intel's financial struggles have led to the layoff of thousands of staff. In early August, the company confirmed that it intended to lay off more than 15,000 workers as part of a cost reduction program.

Related:Gelsinger Promises a Return to 'Iconic' Intel

Intel has turned its focus toward AI-enabled PCs as a major revenue source in the future and intends to help partners capitalize on the technology's potential. The company also hopes to bring AI "everywhere," including all sectors of the current market.

Intel CEO Pat Gelsinger has spoken on his plans to rebuild “the iconic Intel” after losing ground to rivals in Asia.