Gulf nation Abu Dhabi has reportedly acquired a 8.1% stake in American microprocessor firm AMD for about $700 million.

The purchase is being routed through Mubadala Development, a wholly owned investment vehicle of the Government of the Emirate of Abu Dhabi, in the United Arab Emirates.

Mubadala’s mandate is to set up new companies and acquire strategic holdings in existing companies in the UAE or abroad.

AMD is Intel’s only serious rival in the market for X86 processors that power most consumer desktops/laptops and some servers as well.

According to the FT, the acquisition could attract scrutiny of U.S. officials:

[T]he move could attract the attention of the Committee on Foreign Investment in the US, which vets acquisitions by foreign investors. The committee is most worried about investments in technology and defence companies on national security grounds.

AMD recently reported its fourth consecutive quarter of losses.