CNBC’s Kristina Partsinevelos joins 'Money Movers' to discuss Intel's shareholder risk as SoftBank is set to invest $2 billion into the company.

SoftBank has made a $2 billion investment in Intel, acquiring roughly 2% of the company through a primary issuance of new shares. This move provides Intel with fresh capital but also results in some stock dilution. Investors view SoftBank's involvement as a vote of confidence that may attract further institutional interest and potential AI partnerships, given SoftBank's connections with OpenAI and ARM.

At the same time, the US government is considering acquiring a 10% stake in Intel using Chips Act funding, which would not include voting rights but could make the government the company's largest shareholder. This proposal has raised concerns about potential conflicts between US manufacturing interests and shareholder value, as well as the effectiveness of financial support in addressing Intel's core challenges in advanced chip manufacturing. While the cash injection from SoftBank is seen as positive, analysts caution that a true turnaround for Intel will depend on its ability to deliver competitive products.

SoftBank's $2 billion Intel investment

Shares of Intel soaring today after this $2 billion investment from SoftBank. It comes as the Trump administration considers at least a 10% stake in the chipmaker. Our Christina Partsanevelos has the latest in today's tech check. What a busy day on your beat, KP. Yeah, it's been a busy few years, which is great for me. But let's talk about Intel because it is getting a $2 billion lifeline from SoftBank. And shareholders really need to understand what this means for their investment. It's not so black and white. SoftBank would be buying roughly 2% of the company. Intel tells me last night it's a primary issuance, meaning that new shares would come to market and fresh capital, but that also does mean stock dilution. And yet shares are up because investors really see SoftBank's backing as more than just money. It's credibility that could attract other institutions and AI partnerships through SoftBank's OpenAI and ARM connections, for example. Intel, like you said, has also had talks with the Trump administration about a potential 10% government stake using Chips Act funding. Commerce Secretary Howard Lettnick confirmed on CNBC this morning that the plan wouldn't give the U.S. voting rights, even though it could make the federal government Intel's largest shareholder. Here's Lettnick's explanation about the government stake. Listen in. What is in it for the American taxpayer? And the answer Donald Trump has is we should get an equity stake for our money. So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it, get a good return for the American taxpayer instead of just giving grants away. This is the part where I say it's not all black and white. I was talking to Wedbush's Matt Bryson, and he raises a critical concern. If the U.S. owns 10% of Intel, the government won't let the company make decisions that are best for shareholders. Intel couldn't move production to Taiwan Semiconductor or divest fabs to optimize profitability, even if that's the smartest business move. Bryson calls it a, quote, raw deal. Intel went from getting grants with minimal strings to potentially giving up 10% ownership for the same money. Meanwhile, competitors like TSMC and Samsung get grants without any equity stakes. Softbanks investments bring strategic value, no doubt, but potential government ownership creates a fundamental conflict between U.S. manufacturing interest and what's actually best for Intel shareholders, guys. Yeah, that's sort of the point. And we quoted Stacey Razgon a lot this morning, Christina. He writes that we still wonder how much force the administration can or needs to bring if Intel can actually deliver products that meet specs or cost effective. And he argues no one, if they can't, no amount of encouragement is going to help. In other words, the money is one thing, but how much can you force customers to the market? It's difficult. Yeah, because the money is not solving the core problem with Intel, and that seems to be just catching on this A.I. train and moving forward with their more advanced processes. UBS had a note, too, this morning. Everybody has notes, right? It's very topical, but UBS had a note saying that AMD and Broadcom, or I should say NVIDIA and Broadcom are interested possibly in Intel's 18A manufacturing process, and maybe Apple is interested in the 14A. But interest doesn't actually mean millions of dollars of revenue. It takes time to ramp up. There's issues with yields with a lot of these processes in terms of how many chips actually come out workable versus not workable. So it's throwing a cash injection into a company that is struggling. It's going to help buy time. But can that company actually turn itself around and provide a product that the likes of AMD and NVIDIA would want to use as opposed to going elsewhere to manufacture? Maybe that's why Secretary Lutnick was really pooh-poohing the governance question by David, that they don't want to make it seem like they have a heavy hand here in deciding what Intel's strategy is going to be. It's just an investment. Right, because then it would just run against what capitalism in the United States is about, right? Not having a hand from the government, pushing the board as to what they should be doing. If anything, Intel's board finally has some people that have chips background on there. So there is some opportunity for change. Liputin is ready to cut the corners and any fat in regards to cost. But it's going to take time. And so the stock reaction is just maybe a little bit premature when we haven't actually seen the turnaround plan and what this would mean for the actual advanced manufacturing processes. Well, no doubt South Bank injects some confidence in there, at least. Thank you, Christina. Christina Partinevelos.

Hamas has agreed to a ceasefire proposal for Gaza, but mediators are still waiting for an official response from Israel. CBS News contributor Robert Berger has the latest from Jerusalem.

Jerusalem

Middle East Conflict

Mediators await Israeli response to Gaza ceasefire proposal

Indian Prime Minister Narendra Modi met China’s top diplomat on Tuesday and hailed the “steady progress” made in improving the bilateral relationship after a yearslong standoff between the nuclear-armed Asian powers.

New Delhi

India's Modi meets China's foreign minister to rebuild ties

Texas Democrats who ended a walkout found themselves shadowed by law enforcement officers to keep them from repeating the protest that stalled Republican efforts to redraw congressional districts and fulfill President Donald Trump's desire to reshape U.S. House maps.

Austin

Police escort Texas Democrats to prevent new redistricting walkout

Air Canada has reached a tentative agreement with the Canada Industrial Relations Board (CIRB), ending the strike that began over the weekend involving 10,000 members and disrupted travel for more than 100,000 travelers per day.

Toronto

Air Canada reaches tentative agreement with flight attendant union

Exiled former Hong Kong lawmaker Ted Hui hailed Australia's grant of asylum status as a key acknowledgement of the territory's human rights infringements since its authorities quelled massive pro-democracy protests in 2019.

Hong Kong Island

Ex-Hong Kong lawmaker granted asylum by Australia

Forecasters are giving urgent warnings to millions of people who live along the East Coast as Hurricane Erin churns in the Atlantic. The storm will not make direct landfall but is expected to bring dangerous rip currents.

East Coast of the United States

Hurricane Erin to bring dangerous rip currents to U.S. East Coast

Jasveen Sangha, a Los Angeles woman known as the "Ketamine Queen," has agreed to plead guilty to federal charges in connection with the death of actor Matthew Perry. Sangha could face up to 45 years in prison.

Los Angeles

"Ketamine Queen" to plead guilty in Matthew Perry's death

European leaders who converged on the White House for talks on the Russia-Ukraine war demonstrated a united front regarding Ukraine's security on Monday, underscoring the issue as pivotal for the entire continent, not just Ukraine.

Washington

Ukraine Invasion

EU leaders show cautious optimism following Zelenskyy, Trump talks

As Hamas reportedly agreed to some ceasefire terms that would include the return of more hostages, Israeli Prime Minister Benjamin Netanyahu ordered troops to take more of Gaza.

Israel digs in on Gaza takeover as Hamas softens on ceasefire

President Donald Trump said that the United States would help Europe in providing security for Ukraine as part of any deal to end Russia's war in Ukraine.

Trump tells Zelenskyy U.S. would help with security in a peace deal

Bolivia's presidential vote headed to an unprecedented runoff after elections Sunday that ended more than two decades of left-wing dominance in the Andean nation but signaled voters' trepidation about a major lurch to the right.

La Paz

Bolivia heads to runoff after historic defeat for the left

All Air Canada planes were grounded on Monday (August 18) after its 10,000 flight attendants refused a return-to-work mandate from the Canadian government.

Air Canada delays plans to resume operations

Ukrainian President Volodymyr Zelenskyy arrived at the White House Monday (August 18) for his meeting with President Donald Trump and other European leaders about Russia's war in Ukraine. CBS News White House reporter Taurean Small has more.

Trump meeting with Zelenskiy, European leaders at White House

Hamas on Monday informed mediators that it had accepted a ceasefire deal proposal submitted to it the day before, according to international and Israeli outlets.

Reports: Hamas accepts latest Gaza ceasefire proposal

Hurricane Erin will bring dangerously rough surf to parts of the U.S. East Coast. Over the weekend, Erin's outer bands lashed Puerto Rico with up to 7 inches of rain and flooding parts of the island.

Erin expected to bring dangerous conditions to U.S. East Coast

Ahead of his Monday meeting with President Trump, Ukrainian President Volodymry Zelenksyy says his country will not give up any territory to Russia, even as the White House insists potential land swaps will be necessary. Willie James Inman reports.

Kyiv

Ahead of Trump meeting, Zelenskyy says won't give territory to Russia

Thousands of Israeli protesters demanded a deal to secure the release of hostages still held by Hamas in one of the biggest demonstrations since the war in Gaza began. Debora Patta reports.

Thousands of Israelis protest in Gaza, call for end to fighting

Ukrainian President Volodymyr Zelenskyy flies to Washington on Monday under heavy U.S. pressure to agree to a swift end to Russia's war in his country, but determined to defend Kyiv's interests — without sparking a second Oval Office dust-up with Donald Trump.

Zelenskyy, European allies to meet with Trump to discuss peace

European leaders voiced strong support for Ukraine ahead of a Washington summit with U.S President Donald Trump. They emphasized unity, territorial integrity and security guarantees as essential to any peace deal.

Paris

European leaders stress unity with Ukraine ahead of peace talks

International condemnation and pressure from allies have done nothing to stop Israel's plan to displace the people of northern Gaza. Israel on Saturday (August 16) said it is preparing to move Palestinians from combat zones to southern Gaza.

Israeli military prepares to move Palestinians to southern Gaza

Thousands of people took to the streets on Sunday in a nationwide strike amid fears further fighting could endanger the 50 hostages believed to still be in Gaza.

Tel Aviv-Yafo

Dozens of Israelis arrested in protest to demand end to Gaza war

Russia continues to target Ukrainian cities firing hundreds of missiles and projectiles daily despite ongoing peace efforts, led by the United States. Ukrainian officials say their unwillingness to dial back their offensive reflects their lack of sincere interest in peace.

Five killed as Russia continues to pummel Ukrainian cities

U.S. President Donald Trump said that Ukraine should make a deal to end the war with Russia because "Russia is a very big power, and they're not," after a summit where Vladimir Putin was reported to have demanded more Ukrainian land.

Anchorage

Trump told Zelenskiy that Putin wants more of Ukraine, source says

Efforts by Texas Republicans to redraw the state's congressional maps got new pushback from protesters at rallies across the country Saturday. Nearly 280 events took place in 34 states, according to organizers.

"Fight the Trump Takeover" protests held across U.S.

West Virginia's governor says he will send up to 400 National Guard troops to the nation's capital at President Trump's request. They'll join other National Guard troops and federal agents already deployed with local police on the streets of Washington, D.C.

More troops arrive in D.C. at Trump's request

President Trump reversed course Saturday, saying he is no longer seeking an urgent ceasefire in Ukraine, but now agrees with Russian President Vladimir Putin that pursuing a peace deal is the best way to end the war.

Trump sides with Putin, preferring peace over ceasefire

Russian President Vladimir Putin described his meeting with President Trump as "frank, substantive and bringing us closer to making the necessary decisions." But the Alaska summit couldn't have been more far removed from the battlefields of Ukraine.

War-weary Ukrainians desperate for a ceasefire

In Ukraine, many do not believe Russia's president Vladimir Putin actually wants a ceasefire deal. They say Trump should stop making concessions to the Kremlin and for U.S President Donald Trump to demand an end to Russia aggression.

Ukrainians sceptical of Vladimir Putin’s intention

Being a Category 1 hurricane, Erin underwent a 'rapid intensification' which helped the storm to grow and strengthen to a powerful Category 5. Hurricane Erin won't make a direct hit on the U.S., but it will produce dangerous surf conditions for the entire East Coast.

San Juan

Hurricane Erin 'rapidly intensifies' to a Category 5

The Washington, D.C., police chief will remain in command of the local force following a settlement with the Trump administration over the federal takeover, but they are required to cooperate with the White House's immigration policy.

Breakdown