A White House meeting resulted in an agreement for a 10% U.S. equity stake in Intel accompanied by a $10 billion commitment. Grants under the 2022 CHIPS and Science Act would be converted into equity as part of the deal, with the government reportedly not receiving voting or governance rights. Intel's board and shareholders have not yet formalized a response and the precise mechanics remain unclear. Intel has struggled to meet surging data-center GPU demand and has ceded market leadership in AI chips to a rival valued at over $4 trillion, prompting intensified efforts to boost domestic manufacturing.
President Trump said on Friday he had asked Intel CEO Lip-Bu Tan for a 10% stake in the company during a recent meeting at the White House. "He agreed, and they've agreed to do it, and I think it's a great deal for them," Trump told reporters. "He walked in wanting to keep his job, and he ended up giving us $10 billion for the United States," Trump said.
Earlier this week, Commerce Secretary Howard Lutnick told CNBC that a potential deal for an Intel stake would convert grants to Intel from the 2022 CHIPS and Science Act into equity. The law authorized a total of nearly $53 billion in government funding for chip-related activities. "So we'll deliver the money, which was already committed under the Biden administration. We'll get equity in return for it," Lutnick said, adding the stake would not give the government voting or governance rights in Intel.
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