Tech Industry Reacts to Trump's Intel Stake, Beijing's Nvidia Backlash, and Zuckerberg's AI Restructuring

President Trump's 10% stake in Intel Corporation has sparked debate, with some calling it unconstitutional and others viewing it as a step towards national security and semiconductor independence. Beijing has also taken action against Nvidia, curbing sales of its China-specific AI chip after US Commerce Secretary Howard Lutnick made comments deemed insulting by Chinese officials. Meanwhile, Mark Zuckerberg is reportedly planning his fourth major overhaul of Meta Platforms' AI initiatives, while Microsoft is battling Meta for AI talent and has implemented a hiring freeze in its AI division.

President Trump's 10% Stake in Intel Corporation

In a significant move, the Trump Administration has agreed to invest $8.9 billion in Intel Corporation, securing a 9.9% stake in the company. This investment, facilitated through an agreement with Intel, involves the government purchasing 433.3 million primary shares at $20.47 per share. The funding will come from previously awarded grants under the US CHIPS and Science Act and the Secure Enclave program [1].

Intel's CEO, Lip-Bu Tan, expressed the company's commitment to advancing US technology and manufacturing leadership. The government's equity stake will be passive, with no Board representation or other governance rights, but the government will vote with the company's board on matters requiring shareholder approval [1].

This intervention marks a notable shift in US policy, with some critics labeling it unconstitutional, while others view it as a strategic move towards semiconductor independence. The government's investment includes a five-year warrant, exercisable only if Intel ceases to own at least 51% of the foundry business [1].

Nvidia's China Chip Ban

Meanwhile, Nvidia has halted production of its H20 AI chip, designed for the Chinese market to comply with US export curbs. The tech giant has reportedly told some component suppliers to suspend work related to the H20 chip, following strong encouragement from the Chinese government to stop buying these chips due to alleged security concerns [2].

In April, the Trump Administration banned H20 exports, but President Trump reversed the decision after meeting with Nvidia CEO Jensen Huang. However, no export licenses were granted. On Aug. 11, the Trump Administration confirmed that Nvidia and AMD agreed to give 15% of China chip revenue to the US government in exchange for export licenses [2].

The stock market's reaction to these developments is mixed. Nvidia stock was indicated down nearly 2% overnight, while AMD stock dipped slightly. Taiwan Semiconductor Manufacturing (TSM), which makes Nvidia and AMD chips, saw little change in its stock price [2].

Meta Platforms' and Microsoft's AI Initiatives

Separately, Mark Zuckerberg is reportedly planning his fourth major overhaul of Meta Platforms' AI initiatives. Meanwhile, Microsoft is battling Meta for AI talent and has implemented a hiring freeze in its AI division.

References

[1] https://global.chinadaily.com.cn/a/202508/23/WS68a978a9a310851ffdb4fbaa.html

[2] https://www.investors.com/uncategorized/nvidia-halts-h20-production-beijing-directive-ai-chip/