(Bloomberg) — Apollo Global Management Inc. has offered to make a multibillion-dollar investment in Intel Corp., according to people familiar with the matter, in a move that would be a vote of confidence in the chipmaker’s turnaround strategy.

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The alternative asset manager has indicated in recent days it would be willing to make an equity-like investment of as much as $5 billion in Intel, said one of the people, who asked not to be identified discussing confidential information. Intel executives have been weighing Apollo’s proposal, the people said. The size of Apollo’s potential investment could change or discussions could fall apart, they said.

The development comes after San Diego-based Qualcomm Inc. floated a friendly takeover of Intel, people with knowledge of the matter said on Saturday, raising the prospect of one of the biggest-ever M&A deals. Neither deal has been finalized.

Representatives for Apollo and Intel declined to comment.

Under Chief Executive Officer Pat Gelsinger, Intel has been working on an expensive plan to remake itself and bring in new products, technology and outside customers. Still, the company is headed for its third consecutive year of shrinking sales and its shares have lost more than 50% of their value this year. While Apollo may best be known today for its insurance, buyout and credit strategies, the firm started out in the 1990s as a distressed-investing specialist.

Intel’s shares rose as much as 5% in premarket trading in New York on Monday before giving up some of those gains. The stock had closed 3.3% higher at $21.84 on Friday, giving the company a market value of $93.4 billion.

The company’s shares bounced last week after Gelsinger made a series of announcements to accelerate the turnaround. Those included a multibillion-dollar deal with Amazon.com Inc.’s Amazon Web Services cloud unit to co-invest in a custom AI semiconductor and a plan to turn its ailing manufacturing business into a wholly owned subsidiary. Intel also said it would pull back on some projects, including shelving plans for new factories in Germany and Poland for now.

Intel and Apollo already have a relationship. Santa Clara, California-based Intel agreed in June to sell a stake in a joint venture that controls a plant in Ireland for $11 billion to Apollo, bringing in more external funding for a massive expansion of its factory network.

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Apollo also has other experience in the chipmaking space. Last year, the New York-based firm agreed to lead a $900 million investment in Western Digital Corp., buying convertible preferred stock.

–With assistance from Shadab Nazmi and Yasufumi Saito.

(Updates premarket share trading in sixth paragraph.)

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