The US government has agreed to acquire a 10% stake in Intel, marking the latest high-profile intervention by President Donald Trump in corporate America.
Trump confirmed the deal on Friday afternoon, ahead of an official announcement. Intel shares surged $1.70, or 7.3%, to $25.20 following his comments.
The agreement follows a tense August 11 meeting between Trump and Intel’s chief executive, Lip-Bu Tan. The president had initially demanded Tan’s resignation over his financial ties to Chinese technology companies, but the talks ended with Intel committing $10 billion in equity for the United States.
“He walked in wanting to keep his job and he ended up giving us $10 billion for the United States,” Trump said, wearing a red hat emblazoned with “Trump Was Right About Everything!”
Founded in 1968, Intel was once synonymous with Silicon Valley’s rise, supplying chips that powered the personal computer revolution. But in recent years, the Santa Clara–based company has fallen behind rivals, particularly in artificial intelligence hardware. Intel’s stock has dropped nearly 50% over the past five years, while AI chipmaker Nvidia has ascended to become the most valuable US-listed company.
The government stake underscores the administration’s increasingly transactional approach to corporate relations. Just last week, the White House struck a deal requiring Nvidia and AMD to divert 15% of sales revenue from China to the US government in exchange for export licenses. Trump has also pushed for strategic tie-ups in rare earths, including an arrangement with MP Materials to secure critical minerals.
Intel faces significant challenges under Tan, who took the helm in March. The company reported an $18.8 billion annual loss in 2024, its third straight year of negative adjusted free cash flow.
Still, the government move is expected to bolster confidence in Intel’s future. Earlier this week, Japan’s SoftBank confirmed a $2 billion investment, with chief executive Masayoshi Son citing expectations of “further expansion in advanced semiconductor manufacturing and supply in the United States, with Intel playing a critical role.”
