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AI Crucial to US in Cybersecurity Race Against China, Says Fmr. NatSec Official
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August 19, 2025
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44:21
9:09Now PlayingAnne Neuberger, former deputy National Security Advisor for Cyber and Emerging Technology in the Biden administration, breaks down the Trump administration's interest in buying a 10% stake in US chip company Intel and discusses why AI is crucial to the cybersecurity race against China.
The Trump administration is in discussions to take a stake of about 10% in Intel Corp., a move that could see the US become the beleaguered chipmaker’s largest shareholder.
The government’s plan, which would convert grants made under the US Chips and Science Act into equity, is under consideration just as SoftBank Group Corp. announced a surprise bet on Intel’s revival, agreeing to acquire a $2 billion stake in the company.
The US government and the Japanese tech conglomerate both see the potential for a turnaround at Intel, although each likely values different parts of the business. For the Trump administration, a recovery of the chipmaker’s manufacturing prowess would help win jobs and voters. For SoftBank, Intel’s chip design operations beckon with the promise of high margins.
The federal government is considering a potential investment in Intel that would involve converting some or all of the company’s grants from the Chips Act into equity, said the people, who asked not to be identified because the information is confidential. Intel has been slated to receive a combined $10.9 billion in such grants for commercial and military production. The company can also draw on up to $11 billion in loans under the 2022 law.
The grant money, which was originally designed to be disbursed over time as Intel meets project milestones, is roughly enough to pay for the targeted holding. At Intel’s current market value, a 10% stake in the chipmaker would be worth around $10.5 billion. The exact size of the stake, as well as whether the White House chooses to move ahead with the plan, is still in flux, the people said.
The discussions underway with Intel would mark a sea change in US policy toward semiconductors. The arrangement, if finalized, could potentially lay the groundwork for similar agreements with other chipmakers.
“Imagine this: the Biden administration was literally giving Intel — for free, and giving TSMC money for free and all these companies just giving them money for free,” Lutnick said, referring to Taiwan Semiconductor Manufacturing Co., another major chipmaker.
“Donald Trump turns that into saying, ‘Hey, we want equity for the money,’” the secretary continued. “How could that not be smarter, better and more important for the American taxpayer than just free money?”
Lutnick said the US wants to reshore some chipmaking for national security purposes.
“We need to make our own chips here. We cannot rely on Taiwan,” he said.
At the same time, Lutnick did not rule out allowing Nvidia Corp. to sell a new artificial intelligence chip it is developing for the Chinese market. Reuters reported the semiconductor would be based on its Blackwell architecture and more powerful than the H20 model it’s currently allowed to export there.
“Of course, he would like to sell a new chip to China,” Lutnick said, referring to Nvidia Chief Executive Officer Jensen Huang. “I’ve listened to him pitch the president, and the president listens to our great technology companies, and he’ll decide how he wants to play.”
Trump last week signaled he was open to allowing Nvidia to sell a scaled-back version of its Blackwell model to China. The administration hammered out an unusual deal with Nvidia and Advanced Micro Devices Inc. to pay the government 15% of revenue tied to Chinese chip sales.
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