Trump's Corporate Interventionism: A New Form of Governance?

US President Donald Trump's administration is taking an unprecedented approach to intervene in corporate affairs to achieve economic and foreign policy objectives. Trump, backed by his Wall Street finance team, is attempting to raise funds from the sales of AI chips to China by Nvidia and AMD, and is in talks to acquire a 10% stake in Intel. These measures have surprised Wall Street and Washington veterans, and if successful, could enrich investors and boost US national security, but also pose risks of losses for taxpayers and market distortions.

US President Donald Trump's administration is taking an unprecedented approach to intervene in corporate affairs to achieve economic and foreign policy objectives. Trump, backed by his Wall Street finance team, is attempting to raise funds from the sales of AI chips to China by Nvidia and AMD, and is in talks to acquire a 10% stake in Intel. These measures have surprised Wall Street and Washington veterans, and if successful, could enrich investors and boost US national security, but also pose risks of losses for taxpayers and market distortions.

On August 11, 2025, Trump granted export licenses to Nvidia and AMD to sell advanced AI semiconductor chips to China in exchange for a 15% share of the revenue from these sales [1]. This decision has drawn criticism from six Senate Democrats, including Chuck Schumer, who argue that the sale could bolster China's military capabilities and question the legality of the revenue-sharing agreement [1]. Nvidia has defended its chips, claiming they do not enhance military capabilities [1].

The administration is also exploring a 10% stake in Intel, a move that could provide a significant financial boost for the US government and investors. This acquisition is part of Trump's broader strategy to use corporate deals to achieve both economic and foreign policy goals [2].

While these moves could potentially enrich investors and bolster US national security, they also pose risks. The revenue-sharing agreement with Nvidia and AMD could lead to market distortions and may not be in line with US export control laws. Additionally, the acquisition of a stake in Intel could lead to conflicts of interest and potential losses for taxpayers if the investment does not yield expected returns.

The Trump administration's approach to corporate affairs is a departure from traditional US policy, which has often been more focused on regulatory oversight and market competition. If successful, these measures could provide significant financial benefits, but they also come with substantial risks and potential drawbacks.

References:
[1] https://timesofindia.indiatimes.com/technology/tech-news/us-senators-including-chuck-schumer-slam-donald-trump-over-15-cut-on-nvidia-amd-ai-chip-sales-to-china-in-an-open-letter-say-our-national-security-and-military-readiness-relies-upon-/articleshow/123343344.cms
[2] https://en.wikipedia.org/wiki/Foreign_policy_of_the_second_Donald_Trump_administration