Intel is in discussions with multiple large investors to secure an additional equity infusion at a discounted price, according to people familiar with the matter, as reported by CNBC’s David Faber. The chipmaker’s stock dropped more than 7% on Tuesday, reversing earlier gains that followed a $2 billion capital injection from SoftBank and news that the Trump administration is considering various ways to involve itself with the company. Commerce Secretary Howard Lutnick told CNBC that the U.S. government should receive an equity stake in Intel in exchange for funding under the CHIPS Act. This condition has added pressure on Intel to find new sources of capital while navigating the political and financial complexities of public and government-backed support. Sources told Faber that Intel is now looking beyond SoftBank to attract further investment. “They need money to build whatever it is that the customers may actually, ultimately want,” Faber said on CNBC’s “Squawk on the Street.” He noted that while CHIPS Act funds are effectively free, converting them into equity would be dilutive to existing shareholders and could hinder the company’s ability to attract private investment. Intel is undergoing a major turnaround after years of declining sales, shrinking market share, and struggles to keep pace in the AI-driven semiconductor boom. Despite significant investments in expanding its manufacturing capabilities, the company has yet to secure major customers for its new production lines. Leadership changes have been central to the company’s reset. In March, Lip-Bu Tan was named CEO following the ousting of Pat Gelsinger in December. However, Tan’s tenure has faced political scrutiny. Two weeks ago, former President Donald Trump publicly called for Tan’s resignation, labeling him “highly CONFLICTED.” The tone from the former president toward Tan and Intel softened only after the CEO visited the White House to discuss his background, but the controversy has underscored the intense scrutiny the company now faces as it tries to rebuild its position in the global tech landscape.