White House's Hassett says US could take stakes in other chip companies

The U.S. Commerce Department canceled a $7.4 billion semiconductor research grant agreement made under the Biden administration after determining that the National Center for the Advancement of Semiconductor Technology (Natcast) was illegally created. The National Institute of Standards and Technology will now directly manage these funds instead of the private non-profit organization.

The US Commerce Department voided a $7.4 billion semiconductor research grant agreement established under Biden, claiming Natcast, the private non-profit meant to oversee the funds, was illegally created. The National Institute of Standards and Technology will now directly manage the National Semiconductor Technology Center to ensure proper oversight of taxpayer dollars for technological research.

Elon Musk's xAI and X have filed a lawsuit against Apple and OpenAI, alleging monopolistic practices in the AI market. The suit claims Apple's integration of ChatGPT into iPhones gives OpenAI unfair advantages while restricting competition from rivals like Musk's Grok chatbot. Key allegations include biased App Store algorithms favoring OpenAI, structural barriers preventing the growth of alternative AI apps, and billions in damages to Musk's businesses. OpenAI dismissed the lawsuit as harassment, while Apple hasn't directly responded. The case highlights growing tensions over competition, transparency, and market power in both mobile and AI ecosystems.

White House economic adviser Kevin Hassett indicated the U.S. government may acquire equity stakes in additional semiconductor companies beyond Intel, and possibly in other industries. This follows the government's recent investment in Intel through CHIPS Act funding, which remains on track with its implementation. Hassett, director of the National Economic Council, emphasized that this approach reflects a strategic shift in U.S. industrial policy aimed at strengthening domestic manufacturing and technological resilience amid growing global competition. The administration's willingness to consider expanded federal stakes signals evolving priorities in supporting critical tech industries.