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Intel CEO Patrick Gelsinger speaks prior to President Joe Biden’s remarks at Intel Ocotillo Campus on March 20, 2024 in Chandler, Arizona. 

Rebecca Noble | Getty Images

Chipmaker Intel and the CHIPS Act Office are close to finalizing a deal which would award the company a roughly $8 billion grant, according to a person familiar with the matter, as the Biden administration moves to dole out funds before President-elect Trump’s inauguration.

That $8 billion will go towards Intel’s factory-building efforts, said the person. The Commerce Department is expected to finalize the awards in the coming weeks, the person said.

Intel is also in line for a $3 billion contract to manufacture chips for the Department of Defense, a deal announced in September and a rare bright spot in the company’s struggling efforts to grow its fab business. The Commerce Department and Intel declined to comment on the matter.

The Wall Street Journal first reported that the two sides were close to finalizing the grant.

But Intel’s struggles have intensified since the grant was initially announced. The New York Times, citing four people familiar with the matter, reported Sunday that the government had decided to decrease the grant by roughly $500 million due to uncertainties about Intel’s ability to execute on its investment commitment, and because of Intel’s shifting technology roadmap and customer demand.

The U.S. awarded Taiwan Semiconductor Manufacturing Company a $6.6 billion grant earlier this month, raising investor expectations that cash funding for Intel would come soon. Intel has benefited from CHIPS Act tax breaks but has not yet received cash awards, something which Intel CEO Pat Gelsinger has expressed dissatisfaction with.

“We’re frustrated that hasn’t moved faster,” Gelsinger told CNBC in October, referring to the CHIPS Act grants. “They’ve been too bureaucratic in that process. We’re anxious to see those finished.”

U.S. House Speaker Mike Johnson had previously said he might look to repeal the bipartisan CHIPS Act, but he then walked back those comments. The Biden administration and grant awardees have touted the legislation as a job-creating machine.

Intel’s struggles have increased significantly this year. The company posted a nearly $17 billion loss last quarter and has been dialing back CEO Pat Gelsinger’s ambitious plans worldwide.

Intel announced earlier this year it would trim back 15,000 jobs via layoffs and voluntary buyouts. It has made moves to make its foundry business more easily separable from its legacy business, and has been working with advisors on activist defense and a broader strategic review, people familiar with the matter previously said. Intel is also seeking to raise cash via a minority stake in the Altera business, CNBC previously reported, and has been sounding out interested acquirers for weeks.

It may also be staring down a once-unthinkable prospect: a potential takeover bid from an ascending Qualcomm, which has a market cap that now dwarfs Intel’s.

WATCH: We got a lot done this quarter, Intel CEO says

We got a lot done this quarter, says Intel CEO Pat Gelsinger

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Sam Altman says Meta offered OpenAI staff $100 million bonuses, as Mark Zuckerberg ramps up AI poaching efforts

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Sam Altman says Meta offered OpenAI staff 0 million bonuses, as Mark Zuckerberg ramps up AI poaching efforts

OpenAI CEO Sam Altman speaks during the Snowflake Summit in San Francisco on June 2, 2025.

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Meta Platforms tried to poach OpenAI employees by offering signing bonuses as high as $100 million, with even larger annual compensation packages, OpenAI chief executive Sam Altman said.

While Meta had sought to hire “a lot of people” from OpenAI, “so far none of our best people have decided to take them up on that,” Altman said, speaking on the “Uncapped” podcast, which is hosted by his brother.

“I’ve heard that Meta thinks of us as their biggest competitor,” he said. “Their current AI efforts have not worked as well as they have hoped and I respect being aggressive and continuing to try new things.”

Meta did not immediately respond to a request for comment from CNBC.

The Meta CEO is personally trying to assemble a top artificial intelligence team for its “superintelligence” AI lab and has invested heavily in AI through its Meta AI research division, which also oversees its Llama series of open-source large language models.

The moves come after Meta had once again delayed the release of its latest flagship AI model due to concerns about its capabilities, according to a report from the Wall Street Journal.

Meanwhile, sources have previously told CNBC that Zuckerberg has become so frustrated with Meta’s standing in AI that he’s willing to invest billions in top talent. 

Last week Alexandr Wang, founder of Scale AI, announced he was leaving for Meta as part of a deal that saw the Facebook parent dish out $14.3 billion for a 49% stake in the AI startup. Wang added that a small number of Scale AI employees would also join Meta as part of the agreement. 

What Meta's Scale AI deal reveals about the battle for top AI talent

The Times had previously reported that Wang would head a research lab pursuing “superintelligence,” an AI system that surpasses human intelligence.

The company has also recently poached other top talent, including Jack Rae, a principal researcher at Google’s AI research laboratory DeepMind, according to a report from Bloomberg. The report added that Zuckerberg had been directly involved with the recruitment efforts. 

Speaking on the podcast, which was released on Tuesday, Altman said that Meta’s strategy of offering a large, upfront, guaranteed compensation would detract from the actual work and not set up a winning culture.

“I think that there’s a lot of people, and Meta will be a new one, that are saying ‘we’re just going to try to copy OpenAI,'” he added. “That basically never works. You’re always going to where your competitor was, and you don’t build up a culture of learning what it’s like to innovate.”

However, spending big on startups and their talent is nothing new to the AI space. Former Apple chief design officer Jony Ive joined OpenAI after the company acquired Ive’s AI devices startup io through a $6.4 billion all-equity deal last month.

Some tech analysts have also pushed back against the notion that Meta has been missing the mark on AI.

“They basically built the rails for open source AI development, and so much of what is happening in AI is being built on Meta,” Daniel Newman, CEO at Futurum Group, told CNBC’s “Power Lunch” last week. 

Open-source generally refers to software in which the source code is made freely available on the web for possible modification and redistribution. Llama’s open-source characteristics have allowed many third-party applications to be built on top of it.  

Newman added that Meta’s massive investments, such as in ScaleAI, will continue to push it forward in training its behemoth models.

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Trump to extend TikTok deadline for third time, pushing decision out another 90 days

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Trump to extend TikTok deadline for third time, pushing decision out another 90 days

Muhammed Selim Korkutata | Anadolu | Getty Images

For a third time since taking office in January, President Donald Trump plans to extend a deadline that would require China’s ByteDance to divest TikTok’s U.S. business.

“President Trump will sign an additional Executive Order this week to keep TikTok up and running,” White House Press Secretary Karoline Leavitt said in a statement. “As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the Administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure.”

ByteDance was nearing the deadline of June 19, to sell TikTok’s U.S. operations in order to satisfy a national security law that the Supreme Court upheld just a few days before Trump’s second presidential inauguration. Under the law, app store operators like Apple and Google and internet service providers would be penalized for supporting TikTok.

ByteDance originally faced a Jan. 19 deadline to comply with the national security law, but Trump signed an executive order when he first took office that pushed the deadline to April 5. Trump extended the deadline for the second time a day before that April mark.

Trump told NBC News in May that he would extend the TikTok deadline again if no deal was reached, and he reiterated his plans on Thursday.

Prior to Trump signing the first executive order, TikTok briefly went offline in the U.S. for a day, only to return after the president’s announcement. Apple and Google also removed TikTok from the Apple App Store and Google Play during TikTok’s initial U.S. shut down, but then reinstated the app to their respective app stores in February.

Multiple parties including Oracle, AppLovin, and Billionaire Frank McCourt’s Project Liberty consortium have expressed interest in buying TikTok’s U.S. operations. It’s unclear whether the Chinese government would approve a deal.

— CNBC’s Kevin Breuninger contributed to this report

WATCH: Project Liberty’s bid for TikTok is aligned with U.S. national security priorities.

Frank McCourt: Project Liberty's bid for TikTok is aligned with U.S. national security priorities

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AWS’ custom chip strategy is showing results, and cutting into Nvidia’s AI dominance

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AWS' custom chip strategy is showing results, and cutting into Nvidia's AI dominance

AWS announces new CPU chip: Here's what to know

Amazon Web Services is set to announce an update to its Graviton4 chip that includes 600 gigabytes per second of network bandwidth, what the company calls the highest offering in the public cloud.

Ali Saidi, a distinguished engineer at AWS, likened the speed to a machine reading 100 music CDs a second.

Graviton4, a central processing unit, or CPU, is one of many chip products that come from Amazon’s Annapurna Labs in Austin, Texas. The chip is a win for the company’s custom strategy and putting it up against traditional semiconductor players like Intel and AMD.

But the real battle is with Nvidia in the artificial intelligence infrastructure space.

At AWS’s re:Invent 2024 conference last December, the company announced Project Rainier – an AI supercomputer built for startup Anthropic. AWS has put $8 billion into backing Anthropic.

AWS Senior Director for Customer and Project Engineering Gadi Hutt said Amazon is looking to reduce AI training costs and provide an alternative to Nvidia’s expensive graphics processing units, or GPUs.

Anthropic’s Claude Opus 4 AI model is trained on Trainium2 GPUs, according to AWS, and Project Rainier is powered by over half a million of the chips – an order that would have traditionally gone to Nvidia.

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Hutt said that while Nvidia’s Blackwell is a higher-performing chip than Trainium2, the AWS chip offers better cost performance.

“Trainium3 is coming up this year, and it’s doubling the performance of Trainium2, and it’s going to save energy by an additional 50%,” he said.

The demand for these chips is already outpacing supply, according to Rami Sinno, director of engineering at AWS’ Annapurna Labs.

“Our supply is very, very large, but every single service that we build has a customer attached to it,” he said.

With Graviton4’s upgrade on the horizon and Project Rainier’s Trainium chips, Amazon is demonstrating its broader ambition to control the entire AI infrastructure stack, from networking to training to inference.

And as more major AI models like Claude 4 prove they can train successfully on non-Nvidia hardware, the question isn’t whether AWS can compete with the chip giant — it’s how much market share it can take.

The release schedule for the Graviton4 update will be provided by the end of June, according to an AWS spokesperson.

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