The deal between SoftBank and Intel would involve the creation of roughly 87 million new shares, adding an incremental 2% to Intel’s overall share count. Reitzes believes the transaction will happen before the end of the year.

The deal comes as the US government explores a deal to take as much as a 10% ownership stake in the Santa Clara, California, firm.

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.