The Trump administration has confirmed that the federal government now owns 10% of Intel. This deal, valued at approximately $8.9 billion, is part of a broader initiative to establish a sovereign fund.
First Step Toward a Sovereign Fund
President Donald Trump, who returned to the White House in January 2025, stated that this is just the beginning. He claims more such deals will follow, dismissing criticism as 'stupid'. Economic advisor Kevin Hassett noted that this stake is a first step toward building a sovereign fund that will own shares in private firms.
Risks and Consequences for Intel
Intel issued a statement warning of potential problems with the new government stake. One major issue is that international sales could suffer now that the U.S. government is a major shareholder. The company also expressed concerns that converting grant money into equity might deter other government partners.
Future Deal Prospects
Looking ahead, it remains to be seen whether other companies will accept similar terms, and if Congress will expand the sovereign fund concept to other sectors such as AI or crypto infrastructure. For Intel, the deal is complete, and the government is now a shareholder in one of the world's largest chipmakers.
The deal with Intel raises important questions about the future of government participation in the private sector and the potential consequences for other companies receiving federal assistance.
