WEBVTT

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- Intellis reportedly in talks

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for two multi-billion dollar
deals, including a takeover.

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As a struggling chip maker continues

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to draw interest from investors,

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Bloomberg setting unnamed sources.

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Familiar with the matter reports

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that alternative asset manager,
Apollo Global Management,

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has offered to invest
as much as $5 billion.

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That comes just days

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after the Wall Street Journal reported

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that Qualcomm approached
Intel with a takeover bid

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after missing revenue expectations

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for its second quarter earnings.

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In August, the once dominant
Chipmaker stock fell 27%.

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The company reported revenue

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of $12.8 billion in the
second quarter of 2024,

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falling short of Wall Street's
$12.9 billion estimates the

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earnings miss was partly
due to Intel's decision

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to more quickly ramp up
its core ultra artificial

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intelligence CPUs

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or core processing units that
can handle AI applications.

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Intel Chief Executive Pat
Gelsinger set on the company's

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earnings call so far this year.

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Intel has seen its stocks
slide 54% as it falls

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behind new rivals like
Nvidia amid the artificial

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intelligence boom to help
give its business a boost.

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The Santa Clara California
based company last month

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announced a plan to save
$10 billion in 2025.

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That includes reducing its
headcount by roughly 15,000

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or 15% of its workforce.

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Gelsinger said these were the
most consequential changes in

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the company's history.

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Intel has also reportedly
hired Morgan Stanley

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and other advisors to help
fend off potential activist

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investors according to CNBC.

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But it's looking to mount
a turnaround, starting

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with several billions of dollars worth

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of investments from a pair

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of lucrative contracts Announced
last week, the Department

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of Defense and Department

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of Commerce announced
Intel had been awarded up

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to $3 billion in direct
funding under a part

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of the CHIPS Act, known
as the Secure Enclave,

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which is meant to expand
manufacturing of cutting edge chips

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for the US government.

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Also. Last week, Intel

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and Amazon Web Services announced
a multi-year multi-billion

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dollar collaboration

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to advance US-based chip making in Ohio.

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David Diets senior investment
strategist at ppac Private

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Wealth Management previously told Quartz

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that the AWS Partnership

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and additional federal funding
could mark the beginning

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of a turnaround for Intel.

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I'm CIO Fare reporting for Quartz.

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Thanks for watching and stick with qz.com.