Intel ( INTC) stock climbed more than 5% in pre-market trading Tuesday following the announcement that SoftBank Group ( SFTBY) will take a $2 billion stake in the ailing chip giant.

SoftBank’s investment in Intel comes less than a week after it was claimed that the Trump administration was reportedly in talks to acquire its own stake in the struggling chip company, a figure that Bloomberg today reported could amount to around 10 percent, a figure worth about $10.5bn, and which would make it the largest shareholder.

SoftBank is investing $2 billion in Intel, becoming a top-10 stakeholder in the struggling US chipmaker. The move highlights SoftBank’s push into AI and semiconductors, as Intel faces mounting pressure from rivals and possible US government involvement.

The Trump administration is in discussions to take a stake of about 10% in Intel, possibly by converting grants made to the company under the US Chips and Science Act into equity, according to people familiar with the matter.

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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,