Trump Admin Seeks to Replicate Intel's 10% Stake Model Across Industries

The U.S. government has taken a 10% equity stake in Intel as part of a larger $11 billion deal, sparking a national conversation on the evolving relationship between government and private enterprise. President Donald Trump has publicly endorsed the model, stating that similar agreements should be pursued across other sectors to boost economic growth and job creation [2].

This initiative is seen as part of a broader economic strategy that includes the potential creation of a U.S. sovereign wealth fund, an idea championed by Trump’s advisor, Kevin Hassett. The fund would allow the government to invest in key industries, potentially generating long-term returns and strengthening strategic domestic capabilities [3]. Trump has expressed a clear intent to replicate the Intel deal, stating he wants to make such arrangements “all day long” [2].

The government’s stake is structured through the conversion of existing CHIPS Act grants into equity, giving the federal government both financial and strategic influence over the company [4]. While the administration frames the move as a win for national security and economic independence, some critics argue it represents a dangerous shift toward government interference in private enterprise. The Washington Post has highlighted the tension between this approach and traditional Republican principles, calling it a “dangerous intrusion” [5].

The stock market has shown a favorable response to the deal. Intel’s shares rose more than 5% following the announcement, and competitors like AMD also experienced market fluctuations, suggesting investor speculation about future government actions [6]. However, public sentiment on social platforms like Reddit has been more divided. Some argue the government’s involvement undermines free-market ideals, while others see it as a step toward socialist policies [7].

Despite the administration’s optimism, concerns remain among business leaders about the long-term implications of these partnerships. Critics worry about the risk of regulatory overreach and the politicization of corporate decisions. The effectiveness of the model will depend on its ability to be replicated in other key industries without distorting broader economic norms [8].

Trump’s push for expanded government equity stakes has added a new layer of uncertainty to the business environment. While proponents highlight the potential for strengthening the domestic industrial base, opponents emphasize the need to protect free-market principles and avoid overreach. The debate reflects a broader ideological shift in how economic power is distributed and exercised in the U.S. [8].

Sources:

[1] title1: Trump advisor says US may take stakes in other firms after ... (https://m.economictimes.com/news/international/global-trends/trump-advisor-says-us-may-take-stakes-in-other-firms-after-intel/articleshow/123506866.cms)

[2] title2: Trump says he will continue to make deals like Intel one (https://m.economictimes.com/tech/technology/trump-says-he-will-continue-to-make-deals-like-intel-one/articleshow/123505104.cms)

[4] title4: Why Trump & the US Government Want a 10% Stake in Intel (https://technologymagazine.com/news/why-trump-the-us-government-want-a-10-stake-in-intel)

[5] title5: Opinion | The Trump-engineered government stake in Intel ... (https://www.washingtonpost.com/opinions/2025/08/24/trump-intel-government-marketplace/)

[6] title6: Corporate America's Newest Activist Investor: Donald Trump (https://www.nytimes.com/2025/08/23/business/trump-intel-us-steel-nvidia.html)

[7] title7: The administration wants to continue buying stakes in ... (https://www.reddit.com/r/AskConservatives/comments/1mzre1r/the_administration_wants_to_continue_buying/)

[8] title8: Trump wants more deals like Intel's, worrying business ... (https://gazette.com/news/us-world/trump-wants-more-deals-like-intels-worrying-business-community/article_c5e078bc-dd7b-574c-baa2-231189683092.html)