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Dubai Royal-Backed Fund MGX Buys 15% of TikTok U.S. Business in Major Stake Deal: Report

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MGX, a fund backed by Dubai’s ruling family, will take a 15% stake in TikTok’s U.S. business as part of a restructuring meant to increase American control of the popular video app, the Washington Post reported Friday.

The investment, led by Sheikh Tahnoon bin Zayed Al Nahyan, brings MGX into a partnership with Oracle, the database giant co-founded by Larry Ellison. Together, the two will hold roughly 45% of TikTok’s U.S. entity. With other U.S. investors involved, American companies are expected to own more than 65% of the business.

TikTok’s Chinese parent, ByteDance, will remain a significant shareholder, keeping a 19.9% stake in the U.S. arm, according to the Guardian. That arrangement appears designed to ease concerns in Washington, where President Trump has repeatedly pressed for tighter scrutiny of the app’s ownership and data practices.

MGX’s role in the deal adds another layer of intrigue. Earlier this year, the fund bought $2 billion worth of USD1, a stablecoin launched by Donald Trump’s World Liberty Financial. The token is backed by U.S. Treasuries, cash and equivalents, and is pitched as a way for people to access financial services without banks. MGX has already deployed USD1 in its investment in crypto exchange Binance, signaling its willingness to use the stablecoin in large-scale deals.

For MGX, the TikTok stake provides a high-profile foothold in the U.S. social media market, where the platform’s influence over culture and advertising continues to expand.



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Best Altcoins to Buy After Google Acquires Stake in Bitcoin Mining Company
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Best Altcoins to Buy After Google Acquires Stake in Bitcoin Mining Company

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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Google is all set to acquire a 5.4% stake in Cipher Mining, a Bitcoin mining company, in exchange for guaranteeing part of the payment in the deal between Fluidstack (an AI-focused data center company) and Cipher Mining.

  • Fluidstack and Cipher Mining have entered into a 10-year contract worth $3B, under which Fluidstack will lease Cipher Mining’s computing power.
  • Since this is such a large amount, Google has stepped in to guarantee $1.4B of Fluidstack’s obligation.
  • In return, Cipher Mining will issue share warrants that give Google a 5.4% ownership stake (24M shares) in the company.

This isn’t the first time Google has done this. Earlier in August, the tech giant acquired a 14% stake in TeraWulf, another Bitcoin mining company, by backstopping $1.8B out of its $3.7B deal with Fluidstack.

Read on as we explore Google’s newfound interest in Bitcoin mining firms, and highlight the best altcoins to buy now  – including the likes of Bitcoin Hyper ($HYPER) and Snorter Token ($SNORT) – to make the most of this industry shift.

Bitcoin Miners Moving Towards AI

Google’s foray into Bitcoin mining firms isn’t just a long bet on cryptocurrency but also a calculated investment in artificial intelligence.

Here’s a key correlation to pay attention to: both AI and Bitcoin mining require enormous amounts of raw compute and massive power capacity to operate. Both rely heavily on specialized GPUs and cheap bulk electricity.

Bitcoin miners, having existed for more than a decade, already have access to giant data centers with racks, cooling, and robust power infrastructure.

In contrast, the AI industry has to build this from scratch. This is why many Bitcoin mining firms have been pivoting toward a hybrid revenue model by investing in the high-performance computing (HPC) segment.

  • CleanSpark recently raised $100M by using Bitcoin as collateral, a portion of which has been reserved for AI infrastructure.
  • Similarly, Hive Digital has been investing in advanced GPUs to expand its HPC segment.

Google has spotted this pivot, which explains why it has been aggressively acquiring stakes in Bitcoin mining companies.

The financial backing of a tech behemoth like Google is a huge vote of confidence in the long-term sustainability of crypto infrastructure.

By investing in Bitcoin mining firms, Google is strengthening their financial footing, which leads to a more stable crypto economy.

Fresh HPC deals bring new liquidity and credibility to the wider mining and crypto space, transforming miners into mainstream AI-driven compute giants.

All in all, this could be your cue to build a crypto portfolio along these lines. If you’re looking for ideas, here are our top picks for best crypto to buy now.

1. Bitcoin Hyper ($HYPER) – New Bitcoin Layer-2 Bringing Ultra-Fast Speeds, Low Fees & Web3 Support

Investing in Bitcoin’s long-term potential is undoubtedly one of the smartest moves you could make in your crypto investing career.

And to help you do just that – while adding an extra slice of profitability – comes Bitcoin Hyper ($HYPER), a new Bitcoin-themed altcoin currently in presale.

It’s a next-gen Layer-2 solution for Bitcoin that will tackle the network’s age-old issues of slow transactions and high costs.

Unlike Bitcoin’s native chain, which processes transactions one by one, $HYPER will leverage Solana Virtual Machine (SVM) integration to execute thousands of transactions in parallel, provided they’re not interdependent.

The result? Significantly higher throughput and lower costs.

On top of that, the SVM empowers developers to finally build smart contracts and decentralized applications on Bitcoin, bringing a full-fledged Web3 infrastructure to the network.

This includes DeFi trading apps, NFT marketplaces, DAOs and governance, lending, staking, and much more.

One of the most important elements of Hyper’s Web3 environment is its decentralized, non-custodial canonical bridge.

Simply put, it allows you to convert your Layer-1 Bitcoin – which is normally incompatible with Layer-2s – into wrapped Bitcoin that’s fully compatible with Bitcoin Hyper’s Layer-2 network.

Currently in presale, Bitcoin Hyper has already attracted $18.3M from early investors, with each token still priced at just $0.012975. You can also stake it for 64% APY. That said, the next price increase is just hours away. Discover how to buy $HYPER and then get yours at its current early-bird price.

According to our Bitcoin Hyper price prediction, by the way, $HYPER has the potential to go absolutely bonkers once it lists, potentially delivering returns of up to 2,300% by the end of this year alone.

Visit Bitcoin Hyper’s official website to learn more.

2. Snorter Token ($SNORT) – Revolutionary Telegram Trading Bot for Meme Coin Sniping

Like Bitcoin Hyper, Snorter Token ($SNORT) is built to tackle a critical issue in the crypto landscape: the unfair dominance of institutional players in the meme coin trading segment.

Up until now, big-money whales with advanced tools have been able to scoop up nearly all the liquidity in new meme coins, leaving nothing for the average Joe and keeping those monstrous gains for themselves.

Snorter’s game-changing Telegram trading bot, however, will flip the script by letting you place buy and sell limit and stop orders in advance.

Then, its sub-second sniping will automatically execute those trades as soon as liquidity kicks in, finally giving retail traders a shot at playing in the big leagues.

Plus, you won’t have to worry about scammers and hackers troubling you. Snorter will come packed with safeguards against rug pulls, honeypots, common on-chain scams, and even sophisticated sandwich attacks.

The best part about Snorter, though, will be its ease of use. All you’ll have to do to place orders, manage your crypto portfolio, or even enable the bot’s copy-trading function is send simple commands in the familiar Telegram chat.

So even if you’re new to meme coin trading, it’ll feel like a breeze to use.

Buying $SNORT, the bot’s native crypto, gives you access to a host of exclusive benefits, including reduced trading fees of just 0.85% versus the regular 1.5%, staking rewards, no daily sniping limits, and advanced analytics.

The project is currently in presale and has already raised over $4.1M. The good news is you can still buy $SNORT for just $0.1055 apiece and stake it for 115% APY.

The bad news? The Snorter Token presale is in its final stretch and set to end in just 24 days. So, the clock is ticking.

You won’t want to miss out on this one because, according to our Snorter Token price prediction, this new cryptocurrency could hit $0.94 by the end of 2025, potentially delivering a chunky 800% ROI.

Head to the official Snorter Token website and buy your tokens before it’s too late.

3. Dogecoin ($DOGE) – Prominent Meme Coin Prepping for a Fresh Leg Up

Dogecoin ($DOGE) is probably the only meme coin in the market that has moved beyond plain speculation and into the territory of being, for lack of a better word, a blue-chip crypto.

On the technical side, after a sweltering 23,000% rally in early 2021, the token has mostly moved sideways with a few bumps here and there, but nothing of real substance.

That said, the recent ETF announcements and launches – most notably the REX-Osprey DOGE ETF – have injected fresh fuel into the token, and experts believe now could be the best time to buy some $DOGE before it explodes.

According to renowned crypto analyst Ali Martinez, who has 157K+ followers on X, ‘This is a great zone to buy Dogecoin before a bullish breakout to $0.50!’

Martinez highlighted that Dogecoin is currently in an ascending triangle pattern, firmly supported by an upward trend line while aggressively approaching its upper resistance. A breakout here could send the token soaring to new highs.

While he suggests $0.50 as the most realistic target, it’s highly possible that $DOGE could rally further and hit $0.75 on the back of the broader bullish sentiment in the crypto market.

That would be more than a 220% gain from current levels. So even after maturing, Dogecoin is still staring at triple-digit gains, which is proof of both its potential and its dominance.

Interested? Buy $DOGE on Binance or any of the other major crypto exchanges.

Disclaimer: Crypto investments are highly risky. None of the above is financial advice. Always do your own research before investing.

Authored by Krishi Chowdhary, Bitcoinist – https://bitcoinist.com/best-altcoins-to-buy-as-google-acquires-stake-in-bitcoin-mining-company

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.



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FTX founder Sam Bankman-Fried (Nikhilesh De/CoinDesk)
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IG Group Buys Majority Stake in Australian Crypto Exchange Independent Reserve for $72M

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Online trading platform IG Group has acquired a majority stake in Australian cryptocurrency exchange Independent Reserve for 109.6 million Australian dollars ($72.4 million).

The deal, the company said, aims to strengthen IG’s position in Asia-Pacific’s fast-growing crypto markets and complements its recent crypto rollouts in the U.K. and U.S.

Independent Reserve is one of Australia’s oldest regulated crypto platforms, IG’s managing director for Asia Pacific and the Middle East, Matt Macklin, said. It also supports trading in 34 cryptocurrencies across Australian and Singaporean markets.

IG will initially acquire 70% of the company, with the option to buy the remaining 30% based on future performance. The deal is subject to regulatory approvals and expected to close in early 2026 for a total of 178 million Australian dollars ($117.6 million).

Independent Reserve CEO Adrian Przelozny said the transaction gives the exchange a bigger platform to grow while staying aligned with its goal of secure, regulated trading.

The move fills a regional product gap for IG, giving the firm “immediate access” to Australia and Singapore.

Independent Reserve reported revenue of $23.3 million for the fiscal year ending June 2025, up 88% year-over-year, the announcement adds. The platform also saw a 60% increase in monthly active users, reaching around 11,600, and has $1.12 billion in assets under custody from 129,400 funded accounts.

IG Group said the deal will be accretive to earnings starting in fiscal year 2027. Its shares are down 1.8% in today’s trading session.



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Nvidia Appeals to Trump With a $5 Billion Intel Stake
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Nvidia Appeals to Trump With a $5 Billion Intel Stake

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Nvidia became one of competitor Intel’s largest shareholders on Thursday with a $5 billion stake. The two companies will collaborate to jointly develop PC chips and data centers.

Once the dominant name in chips, Intel had been in a steady decline in recent years as it failed to keep up with peers like Nvidia in the AI race.

The company started its official turnaround strategy last year by ousting its previous CEO Pat Gelsinger, who was eventually replaced by Lip Bu-Tan a few months later.

Last month was a whirlwind for both Bu-Tan and Intel: Trump initially called for the CEO’s immediate resignation, citing “conflicts of interest” due to alleged ties to China. Only a few days of lobbying after, Trump not only walked back his words and called Bu-Tan “a success” but also announced a deal that would have the U.S. government take a 10% stake in Intel.

Announcing the deal on Truth Social, Trump said that the “United States of America now fully owns and controls 10% of INTEL.”

That investment, it turns out, was the real comeback for Intel. In its effort to become more competitive in the chips space, Intel now has the help of Nvidia, the biggest name in AI chips. The announcement sent Intel’s stock soaring by more than 30%.

There’s likely more in it for Nvidia than just the stake. The deal is well-positioned to put Nvidia in favor with the government, crucial as the company tries to convince Trump to allow it to sell more advanced chips to China.

Nvidia has been on a months-long rollercoaster ride when it comes to its chip sales in China. The company had been selling lower-tech China-special chips to the region under Biden-era export controls. Trump imposed a blanket ban on all sales in April as part of a greater trade escalation between the two countries.

It took Nvidia CEO Jensen Huang a months-long schmoozing effort to get Trump to undo his ban. The effort involved a $500 billion investment in U.S. manufacturing, a trip with Trump to the UAE to announce a data center deal, and agreeing to give the government a 15% cut of the company’s revenue coming from chip sales in China.

Since the ban got lifted, Huang has been vocal about his desire to sell a higher-tech chip called B30A to China. It’s not yet certain whether Trump will allow that. Or where China stands on it, either.

Beijing is not happy about getting downgraded Nvidia chips and made that clear on Wednesday when the Financial Times reported that the Chinese government had banned the low-grade RTX Pro 6000D chip in China, one of the two chips that Nvidia is allowed to sell there. Instead of relying on Nvidia chips, Beijing now allegedly has confidence that domestic chip offerings are at par with Nvidia’s China-specific ones.

A Trump-led tech industry

Trump’s influence in tech is undeniable. Only eight months into his presidency, CEOs of major tech companies have shown solidarity with him time and again, from standing front stage at the inauguration to promising billions of dollars of investments and accompanying the President on state visits.

For example, Trump flew to meet with the UK Prime Minister on Tuesday and has been there since. His state visit to the UK included billions of dollars’ worth of UK investment deals announced by American big tech giants Nvidia, Google, Microsoft, OpenAI, and Salesforce. The trip is not even done yet.

Trump has so far responded in kind, advocating for these tech giants’ interests in diplomatic conversations, sometimes at the risk of disrupting ties with long-term American allies like the EU. The Trump administration has also dropped a third of all investigations into big tech.

The developments have raised some concern as the close ties between these tech CEOs and the Trump administration have been dubbed online as a “tech broligarchy.”



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Strategy Executive Chairman Michael Saylor standing. (Nikhilesh De/CoinDesk))
Crypto Trends

PEPE Slips as Whale Offloads $4.8M Stake, Still Outperforms Memecoin Sector

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Popular memecoin PEPE dropped roughly 1% as a major token holder sent 500 billion tokens valued around $4.8 million to Binance, adding selling pressure to the token.

The move comes amid a 40-day downtrend that cost the trader roughly $450,000. Tokens are often transferred to accounts on exchanges in preparation for an impending sale. The token most recently traded at $0.00000992, according to market data, bouncing from earlier lows near $0.00000938. Prices swung within a 6% range before recovering toward resistance at $0.00000983.

The whale, according to blockchain data, is still holding onto 1.5 trillion PEPE tokens worth more than $14 million.

More than 3.26 trillion PEPE tokens changed hands during the session, with the strongest volumes recorded during the recovery phase, according to CoinDesk Research’s technical analysis data model.

After dipping to the session’s low, PEPE rebounded sharply as buyers stepped in at support levels. That surge lifted the price close to an intraday peak.

The market responded to the transfer with sustained buying interest, a sign of confidence or opportunistic accumulation. Still, bearish pressure hasn’t vanished. Resistance remains firm just below $0.00001, and price action continues to test support levels.

Nansen data supports the case for opportunity accumulation, as it shows that PEPE whales on Ethereum added 1.46% to their holdings over the past 30 days.

PEPE is outperforming the broader memecoin market. As measured by the CoinDesk Memecoin Index (CDMEME), the sector lost almost 3% of its value over the past 24 hours, more than PEPE’s near 1% decline.



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Dogecoin to Proof of Stake? Cofounder Shares His 2 Cents
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Dogecoin to Proof of Stake? Cofounder Shares His 2 Cents

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Dogecoin founder Billy Markus, known as Shibetoshi Nakamoto on X, took to the platform to discuss the recent debate about the meme coin’s algorithmic consensus. The discourse in the community centers on transitioning Dogecoin (DOGE) from a proof-of-work (PoW) consensus to a proof-of-stake (PoS) one.

Dogecoin not moving to PoS chain

In his post, Markus said his view is that the debate is annoying. According to the DOGE founder, transitioning into PoS would fracture the community. He added that a PoS consensus would cause a fork, resulting in multiple Dogecoins.

i think the chatter about changing the consensus algorithm of dogecoin from PoW to PoS is annoying

all it would do is fracture the community and cause a fork resulting in multiple dogecoins, the chaos isn’t worth it

— Shibetoshi Nakamoto (@BillyM2k) August 27, 2025

The people pushing for PoS argue it addresses the limitations of PoW, while enhancing the potential of Dogecoin for global use. These arguments are substantiated by the success of Ethereum’s PoS and broader industry trends toward energy-efficient blockchains.

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Responding to Markus, Dogecoin Foundation Director Timothy Stebbing said his advocacy is to assess all proposals on their technical merit, for the benefit of the currency.

He emphasized that they even built Dogebox for the community to deploy different ideas and nodes to make educated choices for the future of DOGE. 

Stebbing concluded that the debate is like a peeing contest, so he is conceding that at this point. He said there is little value in continuing to invest engineering time in trying to speed up the network via a serious consensus change.

“The Dogecoin community seems happy with 40 transactions a second, and imagining that will move the needle as a global currency,” says Stebbing.

Dogecoin whales increase activity

Meanwhile, the Dogecoin community has witnessed increased whale activity over the past few days. 

As U.Today reported, a new whale pulled out 52.9 million DOGE, valued at about $12 million, from Binance. Historically, such movements are seen as whales holding on to their stash, rather than trading their assets.

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In an earlier transaction, a mysterious whale sent 500,000,000 DOGE, worth over $106 million, to Binance. This transaction quickly sparked sell-off concerns on the market as the meme coin traded in the lower region.

Nevertheless, DOGE is currently on an uptrend, with the price increasing by 2.6% over the past 24 hours. DOGE trading volume also jumped 14.4% to $2.4 billion.





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Intel
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Intel warns shareholders that the US government’s 10% stake could hurt company’s international sales

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The U.S. government’s acquisition of a 10% stake in Intel highlights strategic importance of the company and indicates how important it is to the U.S. government. But the government’s new 10% ownership stake could cause problems for shareholders, employees, business partners, and the company’s international sales, according to Intel’s filing with the Securities and Exchange Commission (SEC). 

One of Intel’s biggest concerns is its dependence on foreign markets: In fiscal 2024, the company earned 76% of its $53.1 billion revenue outside the United States, a slight decline from the previous year, but still the lion’s share. Sales to entities in China contributed 29% of Intel’s total revenue, followed by the U.S. with 24.5%, Singapore with 19.2%, and Taiwan with 14.7%. Now that the U.S. government is Intel’s largest shareholder, the chipmaker is directly linked to Trump’s unpredictable trade and tariff policies, which could unsettle overseas customers and governments. 

“Having the U.S. Government as a significant stockholder of the Company could subject the Company to additional regulations, obligations or restrictions, such as foreign subsidy laws or otherwise, in other countries,” a statement by Intel reads. 


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“Among other things, there could be adverse reactions, immediately or over time, from investors, employees, customers, suppliers, other business or commercial partners, foreign governments or competitors,” the statement says. 

Intel acknowledged it had not finished evaluating the full financial, tax, and accounting effects of the deal, so further issues may arise. 

The agreement between Intel and the U.S. government, signed on August 22, 2025, includes two funding steps. The first is roughly $5.7 billion, which represents accelerated payments from Intel’s earlier arrangement with the Commerce Department under the CHIPS Act. The second is about $3.2 billion, which is linked to the CHIPS Act ‘Secure Enclave’ initiative for critical chips for aerospace and defense, and will be provided as conditions are met. Together, this funding package gives Intel immediate cash ($5.7 billion) and aligns future payments with government programs. 

But while Intel warns that the deal with the government may cause problems for Intel and its shareholders, U.S. President Donald Trump seems to be happy about the deal.

“I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS. All goes to the USA,” Donald Trump wrote in a social media post. “Why are “stupid” people unhappy with that? I will make deals like that for our Country all day long. I will also help those companies that make such lucrative deals with the United States States. I love seeing their stock price go up, making the USA RICHER, AND RICHER. More jobs for America!!! Who would not want to make deals like that?”



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US government takes 10 percent stake in Intel in exchange for money it was already on the hook for
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US government takes 10 percent stake in Intel in exchange for money it was already on the hook for

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The US is investing $8.9 billion into Intel, but most of the funds come from money that the government was supposed to pay the embattled chipmaker anyway. In an announcement on Friday, Intel said the federal government will fund its investment using the remaining $5.7 billion in grants it hasn’t yet received under the Biden administration’s CHIPS Act, in addition to the $3.2 billion received as part of the Secure Enclave program.

President Donald Trump confirmed the investment during a press briefing before the formal announcement, saying Intel CEO Lip-Bu Tan agreed to give the government a 10 percent stake. Earlier this month, Trump called on Tan to resign over his ties to China, and today he positioned the deal as a way for the executive to “keep his job.”

Trump told reporters that he floated the offer during negotiations with Tan. “I said, ‘I think it would be good having the United States as your partner,’” Trump said. “They’ve agreed to do it, and I think it’s a great deal for them.” Intel has already received $2.2 billion under the CHIPS Act.

The government’s investment in Intel “will be a passive ownership, with no Board representation or other governance or information rights,” according to Intel. “We are grateful for the confidence the President and the Administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership,” Tan says in the press release.

The confirmation of the deal comes just days after SoftBank announced plans to invest $2 billion into Intel to “further expand” chipmaking in the US.

Treasury Secretary Scott Bessent hinted at the government’s potential investment this week, saying during an interview with CNBC that it “would be a conversion of grants” meant to “stabilize the company for chip production here in the US.”

It doesn’t seem like this is the end for Trump’s approach to deal-making, as he said during the briefing that “he’ll do more of them” in the future.

Update, August 22nd: Added information from Intel.



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The US government is taking an $8.9 billion stake in Intel

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President Donald Trump says the US government is taking a 10 percent stake in chip maker Intel. Trump shared the news during a press conference on Friday, though an official announcement is still forthcoming, Reuters reports. News of a plan to convert Intel’s previously promised CHIPS Act funding into equity in the company was first reported earlier in August.

A meeting between Intel CEO Lip-Bu Tan and Trump following the President’s call for Tan to resign seems to be the source of the deal. “He walked in wanting to keep his job and he ended up giving us 10 billion dollars for the United States. So we picked up 10 billion,” Trump shared during the press conference.

Intel later announced more details on the investment. The company said in a press release that the government will “make an $8.9 billion investment in Intel common stock.” It adds that the equity stake will be funded by $5.7 billion previously earmarked for Intel as part of the CHIPS act, and $3.2 billion awarded as part of the Secure Enclave program. Intel had previously recieved $2.2 billion in CHIPS grants, bringing the government’s total spend on the chipmaker to $11.1 billion. The government paid $20.47 per share, so the $8.9 billion investment is equivalent to a 9.9 percent stake in the company.

It’s important to note that the government investing in Intel is not the same thing as receiving free money, it’s the exact opposite. Despite earlier comments from US Commerce Secretary Howard Lutnick suggesting the stake would be non-voting, common stock does come with voting rights. Intel does note that the investment will be passive, with no board representation, and that the government has agreed to vote with its board of directors “on matters requiring shareholder approval, with limited exceptions.”

Intel was supposed to receive up to $10.86 billion in federal funding to expand its chip manufacturing business in the US as part of the CHIPS Act. By agreeing to this deal, Tan is likely trying to make sure that funding still goes through, one of several drastic moves to keep Intel afloat. Tan assumed the title of CEO following Pat Gelsinger’s sudden retirement in 2024. Since taking over, he’s already committed to cutting Intel’s workforce by 20 percent. Even with lower costs and guaranteed investment, the company’s future is still uncertain: Intel is reportedly struggling to make its next-gen Panther Lake chips at scale.

The Trump administration says it won’t seek similar equity deals with other recipients of CHIPS act funding. That hasn’t stopped them from making other equally unprecedented financial arrangements. NVIDIA and AMD reportedly struck a deal with the US government that gives the companies the ability to export products to China in exchange for 15 percent of their profits.

Update, August 22, 6:20PM ET: This story was updated after publish with more information on the deal from Intel, and the headline was changed to the dollar figure, rather than the previously stated “10 percent” amount. A section quoting US Commerce Secretary Howard Lutnick saying that the stake was non-voting was also ammended to reflect the final details of the deal.



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Intel
Gaming Gear

Trump eyes up Intel: What the White House’s reported 10% stake could mean for the struggling manufacturer

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In a surprising turn of events on Monday, it was reported that the U.S. government was considering buying a 10% stake in Intel using CHIPS and Science Act in a bid to provide the struggling chipmaker much-needed cash. Coincidentally, SoftBank agreed to acquire Intel stock worth $2 billion, offering Intel another boost. But can an approximately $12.9 billion injection in liquid cash help Intel turn its fortunes?

Grants to equity

That amount would equal about $10.5 billion at Intel’s current market capitalization of around $103 billion, which is below the value of the company’s real estate and fabrication facilities. However, this decision has yet to officially happen, but there are strong signs pointing toward it.


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Under the CHIPS and Science Act, Intel was awarded a package of $7.86 billion in grants and access to up to $11 billion in loans. The latest figure from the Bloomberg report suggests that a potential purchase of equity in Intel would exceed the previously agreed grant, from $7.86 billion, to a reported $10.9 billion, which is $3.3 billion more than previously agreed upon.

The subsidies were structured as reimbursements tied to the buildout of new fabs and construction milestones, so the funds were to be released in tranches over several years. Intel had already received $2.2 billion of those funds in late January 2025, according to Techcrunch.

The new thing about the Trump administration’s plan is not more money, but a different form of support. Instead of gradually paying the grants, Washington would convert part (or all) of Intel’s $10.9 billion package into equity and Intel in a lump sum, becoming the largest shareholder in the company, with a 10% stake.

As a result, Intel would not get any additional funds from the U.S. government. Intel would receive the funds sooner, and in a lump sum, while the U.S. government would move from a grantor to a shareholder.

The strategic importance of Intel

(Image credit: Intel)

Intel is a strategically important company for the United States both in terms of economic and national security.

Processors made using leading-edge process technologies are crucially important for American companies, such as Apple, AMD, Dell, HP, Nvidia, Qualcomm, and dozens of others. Without advanced silicon, these companies will quickly lose competitive positions to Asian rivals, which might result in trillions in losses to the U.S. economy.

Intel directly employs tens of thousands in high-skilled engineering and factory jobs, though the company enacted significant layoffs in June 2025.

There’s a ripple effect across suppliers, construction, and local economies, with the large number of people Intel employs. Additionally, large projects — such as the Ohio campus, known as the Silicon Heartland — are drivers of national and local economies, and are political symbols of American industrial strength and job creation.

The advantages of having a homegrown manufacturer

Advanced military and intelligence systems increasingly depend on advanced processors, many of which are now produced by TSMC in Taiwan or Samsung in South Korea. However, a domestic supplier ensures that chips intended for defense and aerospace programs are securely sourced and not exposed to supply chain disruptions or espionage risks.

Also, having a strong U.S. chipmaker improves America’s position in negotiations with allies (Japan, South Korea, Taiwan, and the E.U.) that are also investing in semiconductors, and adversaries like China.

Intel is the only U.S.-based company with ambitions to make chips using leading-edge process technologies on American soil. While both TSMC and Samsung Foundry intend to build chips for U.S. companies in Arizona and Texas using advanced production nodes, they will not be their latest nodes.

In that sense, it is crucial for the U.S. government not only to keep Intel alive but also to ensure that it prospers. Losing Intel as a major player in the semiconductor industry would erode the U.S.’s foothold in one of the most important industries for the 21st-century economy, and make the country vulnerable to supply chain interruptions or foreign espionage initiatives.

Is $12.9 billion enough to save Intel?

Intel’s fab projects in Arizona and Ohio are part of the U.S. push to re-shore advanced manufacturing, so the country is not entirely dependent on foreign foundries. While Intel is about to begin high-volume manufacturing (HVM) at its Fab 52 and Fab 62 facilities in Arizona, HVM in Ohio has been pushed away from late 2025, to before 2030. But the importance of the Silicon Heartland in Ohio is hard to overestimate.

(Image credit: Intel)

Intel’s Silicon Heartland project in Ohio — the company’s first greenfield manufacturing site in decades — has heavily relied on government funding under the CHIPS Act, is instrumental to Intel’s foundry ambitions.

The planned Ohio site will span about 1,000 acres (4 km²), with room for as many as eight chip fabs along with facilities for suppliers and partner firms. Intel projected that a complete build-out could cost roughly $100 billion, while the initial phase was budgeted at about $28 billion for two fabs and support facilities.

If Intel had four new fabs capable of producing chips on its latest process technologies, 20A and 18A, by late 2025 or early 2026, it would have capacity for its own products and foundry customers.

However, as the semiconductor market shrank in 2022 – 2023 and Intel failed to get commitments from big customers, it delayed multiple projects and scaled down its capital expenditures in 2023 – 2024.

As a result, while the Arizona fabs are enough to serve Intel’s own needs and some foundry customers, it is unknown whether Intel can accommodate a large foundry client, such as Apple, Nvidia, or Qualcomm.

Intel needs to prepare for clients

(Image credit: Intel)

If Intel plans to land a major foundry customer, it needs additional production capacity that is specifically tailored for contract chipmaking (i.e., a high-mix/low-volume fab). Since Intel is preparing to build in Ohio, the best way for the company to build additional capacity likely is to construct at least one fab in Ohio to produce chips using its 18A-P or 14A process technologies. It’s also possible that Intel could build an additional fab at its Arizona site, which has all support facilities in place and a supply chain around it.

But, no matter where the new fab is — which will have both current-generation Low-Numerical Aperture (NA) and next-generation High-NA lithography tools installed — it will cost between $20 billion and $30 billion. This would be a lot of money for Intel, which bleeds billions every quarter. To add to the issue, Intel needs to begin construction as soon as possible to have the available capacity for prospective foundry partners in the years ahead.

According to Intel’s latest financial reports, the company has $21.04 billion in cash and cash equivalents. So, an influx of $12 billion could be instrumental in stabilizing the company and accelerating the Ohio site buildout, or starting a new fab phase in Arizona. However, a lot depends on timing.

Since support facilities and supply chains already exist in Arizona, it could be cheaper and faster to add a new fab module in Arizona, rather than accelerating the greenfield site in Ohio.

The political and financial importance of Intel

The combined infusion of $10.9 billion from the U.S. government and $2 billion from SoftBank carries weight well beyond the balance sheet, serving as both a financial lifeline and a symbolic endorsement of Intel, following a rocky patch.

For the U.S. government, converting CHIPS Act support into equity transforms subsidies into direct political ownership, which signals to both the industry and allies that America is serious about rebuilding advanced chipmaking capabilities, particularly through the high-profile Ohio project. Also, SoftBank’s $2 billion bet highlights Masayoshi Son’s belief in Intel’s design and production potential and its relevance amid the ongoing AI revolution.

Together, these moves represent a dual vote of confidence — one stemming from national strategy, the other from commercial opportunity and the strategic importance of Intel. This could reassure markets and strengthen Intel’s credibility at a moment when doubts over its competitiveness are quite high.

However, Intel needs to invest money in capacity for its future major foundry customers sooner, rather than later.

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