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U.S. Commerce Secretary Howard Lutnick: Intel has to give gov. equity in return for CHIPS funding

Commerce Secretary Howard Lutnick said Tuesday that Intel must give the U.S. government an equity stake in the company in return for CHIPS Act funds.

“We should get an equity stake for our money,” Lutnick said on CNBC’s “Squawk on the Street.” “So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.”

Shares of the struggling chipmaker climbed 7% Tuesday, continuing to rally on recent reports that the Trump administration is weighing different ways to get involved with the company.

Bloomberg reported Monday that the White House was discussing a 10% stake in Intel, in a deal that could see the U.S. government become the chipmaker’s largest shareholder.

Intel and SoftBank announced on Monday that the Japanese conglomerate will make a $2 billion investment in the chipmaker. The investment, equal to about 2% of Intel, makes SoftBank the fifth-biggest shareholder, according to FactSet.

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Lutnick said any potential arrangement wouldn’t provide the government with voting or governance rights in Intel.

“It’s not governance, we’re just converting what was a grant under Biden into equity for the Trump administration, for the American people,” Lutnick said. “Non-voting.”

Intel declined to comment.

Lutnick also suggested that President Donald Trump could seek out similar deals with other CHIPS recipients.

Intel said last fall that it had finalized a nearly $8 billion grant from the law to build its factories. Taiwan Semiconductor Manufacturing Co. was awarded $6.6 billion under the legislation to boost chip fabrication at its Arizona facilities.

US President Joe Biden, second left, tours the site of the new Intel semiconductor manufacturing facility near New Albany, Ohio, US, on Friday, Sept. 9, 2022.

Gaelen Morse | Bloomberg | Getty Images

‘Silicon Heartland’

Trump has called for more reshoring of U.S. manufacturing to reduce the country’s reliance on companies like Samsung and TSMC to manufacture chips.

Intel has been spending billions near Columbus, Ohio, to build a series of chip factories that the company previously called the “Silicon Heartland.” Intel has said that the factory complex would be able to produce the most advanced chips, including AI chips.

But in July, Intel CEO Lip-Bu Tan said in a memo to employees that there would be “no more blank checks,” and that it was slowing down the construction of its Ohio factory complex, depending on market conditions.

The first factory is now scheduled to start operations in 2030.

The Ohio factory was one of the most public projects funded by the CHIPS and Science Act, which became law in 2022. The law committed the U.S. government to fund chip development and research and was estimated to cost about $53 billion.

“The Biden administration literally was giving Intel for free, and giving TSMC money for free, and all these companies just giving them money for free,” Lutnick said. “Donald Trump turns that into saying, ‘Hey, we want equity for the money. If we’re going to give you the money, we want a piece of the action.’ “

Intel has struggled to capitalize on the artificial intelligence boom in advanced semiconductors and has spent heavily to stand up a manufacturing business that’s yet to secure a significant customer. Intel tapped Lip-Bu Tan to be its CEO in March after his predecessor, Pat Gelsinger, was ousted in December.

Tan met with Trump at the White House last week after the president called for his resignation, alleging he had ties to China.

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— CNBC’s Kif Leswing contributed to this report.

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NASA Marshall Space Flight Center director Joseph Pelfrey resigns

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NASA Marshall Space Flight Center director Joseph Pelfrey resigns

A crane towers above the mobile launcher 2 adjacent the Vehicle Assembly Building at Kennedy Space Center on Tuesday, July 22, 2025.

Richard Tribou | Tribune News Service | Getty Images

The director of NASA’s Marshall Space Flight Center, Joseph Pelfrey, announced his resignation from the role on Thursday, CNBC confirmed.

Pelfrey said in an email to employees at the space agency that as NASA focuses on its mission to return humans to the moon, it will be “important for agency leadership to move forward with a team they choose to execute the tasks at hand.”

The email also said Pelfrey would work with NASA leaders to “pursue new ways” to “serve our space program and our great nation.” Pelfrey wasn’t immediately available to comment.

NASA confirmed Pelfrey’s resignation and said in an email to CNBC that the agency is proceeding “with a public, open competition to find the next permanent director at one of the agency’s most important centers for human spaceflight.”

At Marshall Space Flight Center, in Huntsville, Alabama, Pelfrey oversaw “7,000 onsite and near-site civil service and contractor employees,” and “an annual budget of approximately $5 billion,” according to a NASA web page describing his responsibilities. The space center now employs over 6,000 people, according to the center’s official government website.

Pelfrey had planned an all-hands conference with Marshall employees this week that was canceled, said agency staffers, who asked not to be named to discuss sensitive matters. They said Pelfrey’s resignation came as a surprise.

The White House’s 2026 budget request, which has not yet been enacted into law, includes funding for the space agency. However, NASA’s resources have declined amid Trump administration budget cuts.

About 4,000 NASA employees left through a deferred resignation program offered by the agency, and others were let go through cuts initiated by the Department of Government Efficiency (DOGE), an effort that was led by Elon Musk during his days with the Trump administration.

The administration also defunded and compelled the closure of the NASA Goddard Institute for Space Studies, which was housed in a building owned by Columbia University in New York.

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Tesla’s continuing sales slump in Europe weighs on stock price

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Tesla's continuing sales slump in Europe weighs on stock price

Elon Musk, CEO of SpaceX and Tesla, attends the Viva Technology conference at the Porte de Versailles exhibition center in Paris on June 16, 2023.

Gonzalo Fuentes | Reuters

Tesla shares fell more than 4% on Thursday after data out of Europe showed a continuing sales slump for the automaker, despite strong demand for fully electric vehicles in the region. 

Tesla EV registrations in Europe, a proxy for sales, fell by about 23% year-over-year in August, according to data from the European Automobile Manufacturers’ Association (ACEA) on Thursday.

There were 14,831 Tesla EV registrations in Europe last month, down from 19,136 in August 2024. In the first eight months of this year, Tesla EV registrations in Europe declined 32.6%, the ACEA said.

Meanwhile, total EV registrations throughout the region rose by around 26% through August compared to the same period in 2024. By contrast, registrations for petrol and diesel-powered vehicles declined by more than 20% over that stretch.

Still, RBC analysts wrote in a note on Thursday that they expect Tesla’s total deliveries for the third quarter could amount to 456,000, above a FactSet-compiled consensus of 448,000 deliveries and a Visible Alpha consensus of 440,000 deliveries.

The analysts expect a bump for Tesla as consumers rush to buy EVs in the U.S. before a $7,500 federal tax credit expires at the end of September.

Even with Thursday’s slide, Tesla’s stock has bounced back following a brutal start to the year. It’s now up 5% in 2025 after plunging 36% in the first quarter.

Musk’s political activism in the U.S. and beyond has hurt the Tesla brand and dampened its appeal to many prospective EV buyers.

Earlier this year, Musk endorsed Germany’s far-right AfD party, and this month he appeared by video at an anti-immigrant rally in the U.K. that turned violent. The rally was led by activist Tommy Robinson, a convicted fraudster with a violent criminal record.

British Prime Minister Keir Starmer rebuked Musk for “dangerous” comments that he made at the rally, where 26 police officers were injured. Musk told attendees, “violence is coming to you” and “you either fight back or you die.”

To revitalize interest in the brand, Tesla has said an affordable new model is in the works, which could help it fend off increased competition from the likes of Volkswagen, BYD and other EV makers that have been picking up market share.

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Judge in Anthropic copyright case preliminarily approves $1.5 billion settlement with authors

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Judge in Anthropic copyright case preliminarily approves .5 billion settlement with authors

Dario Amodei, co-founder and chief executive officer of Anthropic, at the World Economic Forum in 2025.

Stefan Wermuth | Bloomberg | Getty Images

A federal judge on Thursday preliminarily approved Anthropic’s offer to pay $1.5 billion to settle a class action lawsuit with a group of authors, in what will be the largest publicly reported copyright recovery in history.

The lawsuit, filed in the U.S. District Court for the Northern District of California, was brought last year by authors Andrea Bartz, Charles Graeber and Kirk Wallace Johnson. It alleged that Anthropic illegally downloaded books from pirated databases like Library Genesis and Pirate Library Mirror.

“We are grateful for the Court’s action today, which brings us one step closer to real accountability for Anthropic and puts all AI companies on notice they can’t shortcut the law or override creators’ rights,” the authors said in a joint statement Thursday.

Anthropic didn’t immediately respond to CNBC’s request for comment.

The startup was founded by former OpenAI research executives, including Anthropic CEO Dario Amodei, in 2021. Anthropic, which is valued at $183 billion, is best known for its AI assistant Claude.

AI startups and media companies have been closely following this lawsuit against Anthropic as they work to outline what copyright infringement means in the AI era. 

Anthropic initially proposed the $1.5 billion settlement earlier this month. The company said it would pay roughly $3,000 per book plus interest, and it agreed to destroy the datasets containing the allegedly pirated material.

U.S. District Judge William Alsup initially expressed some reservations about Anthropic’s offer, including concerns over how to ensure authors would be properly informed. Alsup ultimately approved the settlement after “several weeks of rigorous assessment and review,” according to a release.

Alsup will consider final approval of the settlement once the notice and claims processes are complete, the release said.

Aparna Sridhar, Anthropic’s deputy general counsel, said in a statement that the company is pleased with the determination, and that the settlement “simply resolves narrow claims about how certain materials were obtained.”

“The decision will allow us to focus on developing safe AI systems that help people and organizations extend their capabilities, advance scientific discovery, and solve complex problems,” Sridhar said.

WATCH: Anthropic agrees to pay $1.5 billion to settle author’s class action lawsuit over AI training

Anthropic agrees to pay $1.5 billion to settle author's class action lawsuit over AI training

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