Pentagon drops plan to spend $2.5B on Intel defense grant, Bloomberg says

The Pentagon has pulled out of a plan to spend as much as $2.5B on a chip grant to Intel, people familiar with the matter told Bloomberg’s Mackenzie Hawkins and Ian King. The move threatens to limit the total amount that Intel has been expecting to get in federal funding and puts the onus on the Commerce Department to make up for the shortfall, “setting up a contentious situation,” said the report.