The US government acquired a 10% equity stake in Intel and intends to pursue similar investments in other companies. Commerce Secretary Howard Lutnick announced the ownership and thanked Intel CEO Lip-Bu Tan for a deal described as fair. President Trump met with Tan and secured $10bn attributed to the United States, with the equity stake roughly equating to planned Chips and Science Act grants for domestic chip plant construction. The administration has also negotiated revenue-sharing and ownership arrangements with Nvidia, AMD, the Pentagon on rare-earth mining, and secured a golden share in a steel transaction. Critics warn of heightened corporate risk.
The US government has taken an unprecedented 10% stake in Intel under a deal with the struggling chipmaker and is planning more such moves, according to Donald Trump and the commerce secretary, Howard Lutnick, the latest extraordinary intervention by the White House in corporate America. Lutnick wrote on X: BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies.
Trump met with Lip-Bu Tan on Friday and posed for a photo with Lutnick. The development follows a meeting between Tan and Trump earlier this month that was sparked by the US president's demand for the Intel chief's resignation over his ties to Chinese firms. He walked in wanting to keep his job and he ended up giving us $10bn for the United States. So we picked up $10bn, Trump said on Friday.
the equity stake is about equal to the amount Intel is set to receive in grants from the government under the Chips and Science Act to help fund the building of chip plants in the US. The Intel investment would be the latest of several unusual deals struck by the Trump administration with US companies, including agreeing to allow the AI chip giant Nvidia to sell its H20 chips to China in exchange for the US government receiving 15% of those sales.
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