Intel lands AWS deal and $3 billion US grant to boost AI and defense hardware

The news: Intel announced plans to restructure its foundry business into an independent subsidiary with its own board and ability to take in external funding. 

Intel has invested $25 billion in its foundry over the past two years, and that division reported a $2.8 billion operating loss in Q2.

Breaking up to stay profitable: Intel opening up its foundry business to investors could be a compelling opportunity for competitors like Qualcomm, Nvidia, and AMD to boost domestic manufacturing through partnerships and investments.