The plan, which will begin construction in 2026, aims to add nearly 1.3 gigawatts of computing power, designed to enhance missions ranging from cybersecurity to drug discovery.

“This investment removes the technology barriers that have held government back,” AWS CEO Matt Garman said. “We’re giving agencies expanded access to advanced AI capabilities that will enable them to accelerate critical missions from cybersecurity to drug discovery. This investment removes the technology barriers that have held government back and further positions America to lead in the AI era.”

The new infrastructure will span AWS Top Secret, AWS Secret, and GovCloud regions, providing federal agencies with access to a suite of AI services including Amazon SageMaker for model training and customisation, Amazon Bedrock for deploying models and agents, Amazon Nova, and Anthropic’s Claude chatbot. 

The rollout will also integrate NVIDIA AI chips and AWS Trainium hardware, allowing agencies to run complex simulations, analyse massive datasets, and develop tailored AI solutions with outstanding speed.

AWS has been a long-standing partner of the U.S. government. Its first government cloud infrastructure dates back to 2011, followed by AWS Top Secret-East in 2014, the first air-gapped commercial cloud for classified workloads. 

AWS Secret Region was launched in 2017, accredited to handle all levels of classified data. Today, the company serves over 11,000 federal agencies, making it the largest provider of secure cloud services to the government.

While Amazon tops competitors in the cloud market, companies like Google, Oracle, and Microsoft have been expanding their AI products and services to federal customers. 

Google’s “Google for Government” and enterprise tiers from OpenAI and Anthropic have all been offered at nominal rates to encourage adoption.

Experts also noted the geopolitical implications. “The U.S. is in an AI arms race with China and will significantly increase its AI compute capacity to maintain its lead,” said D.A. Davidson analyst Gil Luria. 

AWS’s new infrastructure will allow agencies to convert previously fragmented intelligence, supply chain, and research data into actionable insights at an unprecedented scale, effectively compressing months of analysis into hours.

Combining high-performance computing with AI enables the project to achieve its mission of transforming how federal agencies operate, supporting missions across national security, scientific research, healthcare, and industrial innovation. 

For the government, this investment by Amazon will boost speed, security, and analytical capacity, strengthening America’s leverage in AI and technology.

U.S. shares rose 7% on Thursday, with a further 2.6% gain after hours, while Frankfurt-listed shares climbed 3.6% on Friday. Investors are betting that government backing could provide much-needed stability for the struggling chipmaker.

The potential investment was first reported by Bloomberg, noting discussions that followed an 11 August meeting between President Donald Trump and Intel’s Chief Executive Officer, Lip-Bu Tan. 

The talks reportedly focused on how Washington could accelerate domestic semiconductor manufacturing, with the delayed Ohio mega-fab project expected to be a central part of the plan.

The development comes amid one of Intel’s most challenging periods in decades. The company posted a $2.9 billion net loss in the second quarter of 2025, driven by $1.9 billion in severance costs and $800 million in asset impairments. 

A restructuring plan has seen 25,000 jobs cut and major chip fabrication projects in Germany, Poland, and Ohio scrapped or delayed.

Trump’s involvement with Intel has been far from smooth. Days before the reported stake talks, he called for Tan to resign over what he described as “highly conflicted” ties to Chinese firms. 

His comments followed a letter from Senator Tom Cotton, alleging Tan’s investments in over 100 Chinese technology companies, including at least eight linked to the People’s Liberation Army.

Tan’s past leadership of Cadence Design Systems has also resurfaced in political debate. In July 2025, the company admitted to illegally exporting chip design software to a Chinese military university, paying $140 million in fines.

Despite political issues, Intel aims to continue cooperating with the White House. “Intel is deeply committed to supporting President Trump’s efforts to strengthen U.S. technology and manufacturing leadership,” a company spokesperson said. 

“We look forward to continuing our work with the Trump Administration to advance these shared priorities, but we are not going to comment on rumours or speculation.”

Tan has also made it apparent that there will be no return to unchecked spending. “There are no more blank cheques. Every investment must make economic sense,” he said.

Intel has already secured nearly $8 billion in federal subsidies through the CHIPS and Science Act, placing it among the largest beneficiaries of U.S. semiconductor funding.

Analysts suggest a direct government stake could help stabilise Intel’s finances and restore competitiveness against rivals Nvidia, AMD, and TSMC.

The agreement is similar to OpenAI’s move, which recently made its ChatGPT Enterprise product available to participating agencies under the same pricing model.

The offer extends to the executive, legislative and judicial arms of government. While there is no requirement for agencies to adopt Claude, the deal opens the door for lawmakers, judges and federal workers to integrate the chatbot into day-to-day operations for sensitive but unclassified tasks.

“America’s AI leadership requires that our government institutions have access to the most capable, secure AI tools available,” said Anthropic chief executive Dario Amodei. “By offering expanded Claude access across all three branches of government, we’re helping the federal workforce leverage frontier AI capabilities.”

The GSA’s Federal Acquisition Service commissioner, Josh Gruenbaum, said affordability would speed adoption. “The price is going to help uptake from agencies happen that much quicker,” he noted.

Claude has already been deployed in select agencies, including the Department of Defense, and is approved under the FedRAMP High security standard. The government recently added Anthropic’s Claude, OpenAI’s ChatGPT, and Google’s Gemini to its Multiple Award Schedule, making them official suppliers for AI procurement.

Tech giants see little direct profit from such low-cost agreements. However, they gain valuable insight into how AI is applied in high-value government use cases, intelligence that could change future enterprise products or renewals once the current deals expire.

Discussions are ongoing with other providers, including Meta’s Llama, Elon Musk’s xAI’s Grok, and smaller niche AI platforms. Google is also reportedly negotiating a similar offer for its Gemini chatbot.

The approval process comes against a political backdrop. The White House has pledged to block AI systems found to have “partisan bias or ideological agendas” from doing business with the federal government. 

Critics of existing models, including some of former President Donald Trump’s allies, have claimed that tools such as ChatGPT and Gemini lean towards liberal viewpoints.

Government officials have stressed that approval for procurement does not indicate preference for any particular platform and that all approved models remain subject to ongoing bias reviews.

This proposal, which follows months of anticipation surrounding TikTok’s operations in the U.S., aims to address national security issues while maintaining TikTok’s presence in the country.

The proposal suggests creating a new U.S.-based company that would combine Perplexity AI, TikTok’s U.S. operations, and contributions from additional investors. 

The U.S. government’s stake in the entity would materialise after an initial public offering (IPO) valued at no less than $300 million, according to details shared with investors and reported by The Associated Press. ByteDance, TikTok’s current Chinese owner, could retain a portion of its ownership under this structure.

The revised plan comes after feedback from the Trump administration, which points to TikTok’s data security and its ties to ByteDance. 

President Donald Trump has previously revealed his preference for a U.S. stakeholder to acquire TikTok and showed interest in the government receiving a significant ownership share. “I’d like to see the U.S. government get 50% ownership,” Trump said earlier this month, though it’s not yet certain whether he was referring to government ownership or the U.S. investor participation.

The merger plan places Perplexity AI, a growing company in the artificial intelligence space, to play a fundamental role in the future of TikTok. 

A source familiar with the deal noted that Perplexity’s pitch involves maintaining TikTok’s core video-sharing functionalities while ensuring stricter governance and compliance measures. ByteDance’s recommendation algorithm, however, is excluded from the deal, as it is considered a vital proprietary asset.

The financial framework for the merger includes funding from new capital providers, who would facilitate a one-time dividend payment to ByteDance’s existing investors and support the new company’s growth. 

Even with ByteDance’s public reluctance to sell TikTok’s U.S. operations outright, this proposed merger—rather than a sale—could make the deal more appealing to the Chinese company, sources say.

While the discussions are ongoing, other companies, including Oracle, Microsoft, and possibly Elon Musk, are reportedly exploring similar acquisition opportunities for TikTok. President Trump has promised a final decision on TikTok’s future in the U.S. within the next 30 days.

TikTok CEO Shou Zi Chew, in a recent video posted on the platform, was positive about resolving the situation: “I want to thank President Trump for his commitment to work with us to find a solution that keeps TikTok available in the United States.”

This brings the end to an eight-month ordeal, during which he faced allegations including money laundering and tax evasion.

Following a ruling from the Federal High Court, Gambaryan left Kuje prison late Wednesday night, allowing him to return to the United States for urgent medical care. 

The court’s decision, supported by the Economic and Financial Crimes Commission (EFCC), brought to light the deterioration of Gambaryan’s health during his detention, prompting the need for specialised treatment.

In response to his release, the U.S. government expressed appreciation to Nigeria for facilitating Gambaryan’s return. Secretary of State Antony Blinken issued a statement, thanking the Nigerian government for its cooperation and emphasising the importance of U.S.-Nigeria relations.

Blinken stated, “The United States thanks the Government of Nigeria for releasing U.S. citizen Tigran Gambaryan on medical grounds, allowing him to return to the United States to receive the specialized medical care he requires.

“This positive outcome demonstrates the strength of the U.S.-Nigeria partnership and highlights our shared commitment to working together to advance our common interests.  Our close law enforcement cooperation remains a cornerstone of our bilateral relationship, and the United States is committed to working closely with the Government of Nigeria to address mutual concerns and prioritize the safety and well-being of our citizens.”

Gambaryan’s family are greatly relieved following his release, particularly his wife, Yuki Gambaryan, who stated, “It is a huge relief that this day has finally come. The past eight months have been a living nightmare.” She thanked the U.S. government and supporters for their support during this challenging time.