According to informed sources, Apollo Global Management Inc. has proposed an investment of tens of billions of dollars in Intel Corp., showing a vote of confidence in the global strategy of turning around this chip manufacturer.

One unnamed source stated that the alternative asset management company has recently indicated its willingness to invest up to $5 billion in Intel. The source said that Intel executives have been weighing Apollo's proposal, mentioning that the potential investment scale by Apollo might change or discussions could break down.

The development occurred following the friendly acquisition of Intel by Qualcomm based in San Diego, increasing the likelihood of one of the largest transactions in history.MergerBoth transactions have not been finalized.

Representatives from Apollo and Intel declined to comment.

Under the leadership of CEO Pat Gelsinger, Intel has been developing an expensive plan to reshape itself and introduce new products, technologies, and external customers. Despite this, the company is set to experience a third consecutive year of declining sales, with its stock price falling over 50% this year. While Apollo is best known today for its insurance, acquisition, and credit strategies, the company established itself in the 1990s as an expert in distressed asset investments.

As of the time of writing, Intel's stock price rose by 3.31% on Monday (September 23). The stock closed up 3.3% at $21.84 last Friday, with a market cap of $93.4 billion.

(Image source: finance.yahoo)

Last week, after issuing a series of announcements to accelerate the return to profitability, the company's stock price rebounded. This includes reaching a multi-billion dollar deal with Amazon.com Inc.'s Amazon Web Services cloud division, jointly investing in custom AI semiconductors, and planning to transform its struggling manufacturing business into a wholly-owned subsidiary. Intel also stated that it will withdraw some projects, including temporarily shelving plans to build new factories in Germany and Poland.

Intel and Apollo have established a partnership. California-based Intel, in June, agreed to sell a stake in a joint venture controlling an Irish factory to Apollo for $11 billion, bringing in more external funding for a large-scale expansion of its factory network.

Apollo also has other experiences in the chip manufacturing field. Last year, the New York-based company agreed to lead a $0.9 billion investment in Western Digital Corp., purchasing convertible preferred stock.