Palantir cofounder on the US taking a stake in Intel: 'The whole thing is very weird'

"It's very weird, of course, for the government to be taking a stake in something."

"It's also a little bit weird for the government to be giving $9 billion to a company, too."

"It's cronyism in some form."

"the "government's equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the US CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program.""

Joe Lonsdale criticized the U.S. government's $8.9 billion equity investment in Intel as "weird" and "cronyism." The funding comes from the CHIPS and Science Act, with Intel stating the stake will be funded by $5.7 billion in previously awarded but unpaid CHIPS grants and $3.2 billion from the Secure Enclave program. The Secure Enclave program aims to expand U.S. semiconductor manufacturing. Government equity stakes in private firms are rare outside crises like 2008, and National Economic Council Director Kevin Hassett said more investments could follow, likening the move to sovereign wealth funds.

Read at Business Insider