Intel has reportedly approached Apple about securing an investment in the ailing chipmaker as part of efforts to strengthen a business that is now partially owned by the U.S. government.
Bloomberg reports that Intel has reached out to Apple to discuss the possibility of an investment in the struggling chipmaker. According to sources close to the matter, who wished to remain anonymous due to the private nature of the discussions, Intel is seeking to secure funding from Apple as part of its ongoing turnaround efforts, which have been bolstered by partial U.S. government ownership.
The talks between the two tech giants have also included discussions on how they can work more closely together, although the exact nature of this potential collaboration remains unclear. While the negotiations are still in the early stages and may not result in a finalized agreement, the news has already had a significant impact on Intel’s stock, which rose 6.4 percent to $31.22 on Wednesday following the initial reports.
This potential deal with Apple follows a series of investments in Intel from other major players in the tech industry. Last week, Nvidia Corp. announced a $5 billion investment in the chipmaker, with plans to work together on chips for personal computers and data centers. Additionally, SoftBank Group Corp., the Japanese tech giant looking to expand its presence in the U.S., revealed a $2 billion investment in Intel last month.
Breitbart News previously reported on the Nvidia investment:
The deal is not just about capital. Nvidia and Intel have agreed to jointly develop new products for data centers and personal computing, leveraging each company’s strengths. Intel will manufacture Nvidia-custom x86 CPUs, which Nvidia will integrate into its AI infrastructure platforms. Additionally, Intel will build chip systems for Nvidia chiplets, the modular components that power next-generation PCs. This collaboration is expected to expand both companies’ ecosystems and lay the groundwork for what Nvidia CEO Jensen Huang calls “the next era of computing.”
Despite these investments and the backing of the federal government, Intel still faces significant challenges in its bid to regain its former dominance in the semiconductor industry. The company has lost its long-held technological edge and market share to competitors such as AMD. Furthermore, Intel has struggled to capitalize on the growing demand for AI hardware, a market in which Nvidia has dominated.
Under the leadership of CEO Lip-Bu Tan, Intel is attempting to turn the tide and reclaim its position as a leading chipmaker. The company has pursued a strategy of becoming a chip foundry, producing semiconductors for external clients. However, securing enough customers to support its factory expansion plans has proven difficult.
Intel’s turnaround began with the Trump administration taking an equity stake in the company in exchange for CHIPS act funding. As Breitbart News reported:
Trump has pursued government investment in semiconductors and rare earth materials, which includes a stake in chipmaker Nvidia and MP Materials.
“We should get an equity stake for our money,” Commerce Department Secretary Howard Lutnick said this week.
“So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.”
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
