Link: US government takes 10 percent stake in Intel in exchange for money it was already on the hook for

The US government is investing $8.9 billion into Intel, leveraging funds already designated for the company under federal programs. Intel stated that this sum includes $5.7 billion pending under the CHIPS Act and $3.2 billion from the Secure Enclave program.

Recent conflicts between President Trump and Intel CEO Lip-Bu Tan, where Trump demanded Tan’s resignation over ties with China, shaped this deal. Trump views the investment as a strategy to maintain US manufacturing and technology supremacy.

During negotiations, Trump proposed making the US a stakeholder in Intel, perceiving it as beneficial for both parties. As a result, the government will hold a 10% passive stake in Intel, without board influence or governance rights.

Following the government’s announcement, SoftBank also declared a $2 billion investment in Intel to boost chip production in the US. This reflects growing interest and confidence in Intel’s capabilities and strategic importance.

Treasury Secretary Scott Bessent indicated that this investment aims to stabilize and enhance US chip production. The government's increasing involvement in private enterprise highlights a strategic approach to national technological advancement.

Trump hinted at future deals modeled on this arrangement, suggesting a continued aggressive policy in technology partnerships and investments. This unfolding strategy underscores an assertive governmental role in key industrial sectors.

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Yoooo, this is a quick note on a link that made me go, WTF? Find all past links here.