Trump Announces U.S. Takes 10% Stake in Intel for $10 Billion

President Donald Trump announced on Friday that Intel had agreed to grant the U.S. government a 10% stake in the chipmaker, a deal valued at approximately $10 billion. Speaking from the Oval Office, Trump said the arrangement followed a conversation with Intel CEO Lip-Bu Tan, whom he had previously urged to resign over concerns raised about his business ties. Trump claimed the agreement was a win for the American people, with the equity stake expected to benefit the national economy and reinforce U.S. leadership in key technological sectors [1].

The government had previously allocated $11 billion in grants to Intel under the CHIPS and Science Act, passed during the Biden administration. Under the new agreement, the U.S. will receive equity in return for those funds, though the government will not hold governance rights or a board seat, according to The New York Times [2]. Trump has positioned the deal as part of a broader strategy to leverage federal investment in exchange for a financial stake in strategic industries, a pattern he said would continue [3].

Commerce Secretary Howard Lutnick has previously outlined a similar framework, advocating for the government to receive equity in return for the CHIPS Act grants. Lutnick emphasized that the administration intended to follow through on the Biden-era funding while securing a return on the public investment [4]. Trump’s administration has also pushed similar arrangements with other major firms, including a revenue-sharing deal with Nvidia and AMD, which requires the companies to give the U.S. government 15% of AI chip sales in China in exchange for export licenses [5].

The deal has drawn mixed reactions. Some observers see it as a bold step in reshaping the relationship between the federal government and private enterprise, particularly in sectors vital to national security and technological dominance. Others, like Senator Rand Paul (R-Ky.), have criticized the move as an overreach into market dynamics, with concerns about the implications of government ownership in private firms [6]. Despite the criticism, Trump reiterated his stance, stating that the administration would continue to pursue such agreements as long as they do not compromise U.S. military or security interests.

Intel’s stock rose 5.5% in response to the news, reflecting market optimism over the terms of the deal and the company’s continued access to federal support. A spokesperson for Intel declined to comment on the matter, while the White House has not yet responded to requests for further clarification [7].

Trump’s comments align with a broader trend of increasing government intervention in major industries, including recent demands for board representation in the proposed merger between U.S. Steel and Nippon Steel. These actions suggest a deliberate effort to align corporate strategies with national interests, with the administration asserting its influence through financial incentives and regulatory leverage [8].

Sources:

[1] Trump says Intel agreed to give the government 10% of the chipmaker (Fortune)

[https://fortune.com/2025/08/22/trump-intel-stock-10-percent-stake-tech-chipmakers/](https://fortune.com/2025/08/22/trump-intel-stock-10-percent-stake-tech-chipmakers/)

[2] Wall Street Journal: U.S. officially takes 10% stake in Intel (CNBC)

[https://www.wsj.com/](https://www.wsj.com/)

[3] Trump Says Intel Agreed to $10B Deal, Stock Pops 6% (Business Insider)

[https://www.businessinsider.com/trump-says-intel-agreed-us-investment-deal-stock-price-2025-8](https://www.businessinsider.com/trump-says-intel-agreed-us-investment-deal-stock-price-2025-8)

[4] Live updates: The latest on the Trump administration (CNN)

[https://www.cnn.com/politics/live-news/trump-administration-redistricting-08-22-25](https://www.cnn.com/politics/live-news/trump-administration-redistricting-08-22-25)

[5] Donald Trump says US to take 10% stake in troubled chipmaker Intel (Financial Times)

[https://www.ft.com/content/aec7bdce-d9ca-4416-a1b4-a0da5d11c715](https://www.ft.com/content/aec7bdce-d9ca-4416-a1b4-a0da5d11c715)

[6] Trump says Intel agreed to give US a stake in its company (CNN)

[7] Trump Says Intel Has Agreed to Give the US a 10% Equity (Reddit)

[https://www.reddit.com/r/stocks/comments/1mxdrxr/trump_says_intel_has_agreed_to_give_the_us_a_10/](https://www.reddit.com/r/stocks/comments/1mxdrxr/trump_says_intel_has_agreed_to_give_the_us_a_10/)