Intel, the only American company capable of making advanced chips on U.S. soil, said in a press release that the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company. Intel noted that the price the government paid was a discount to the current market price.
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This is some of the most bonker news I've heard.
The US gov paying billions to get shares in a company, and no board seat in return. Intel hasn't issued any dividends this year, in spite of a long standing tradition to issue quarterly dividends. The company is arguably on a downtrend with dwindling market share and losing the competing battle with AMD in terms of technology.
The Intel investment marks the latest unusual deal with U.S. companies, including a U.S. government agreement allowing AI chip giant Nvidia NVDA.O to sell its H20 chips to China in exchange for receiving 15% of those sales.
Other recent deals include an agreement for the Pentagon to become the largest shareholder in a small mining company, MP Materials (MP.N)
, opens new tab, to boost output of rare earth magnets and the U.S. government's winning a "golden share" with certain veto rights as part of a deal to allow Japan's Nippon Steel (5401.T), opens new tab to buy U.S. Steel.
https://www.reuters.com/business/us-take-10-equity-stake-intel-trumps-latest-corporate-move-2025-08-22/So the US gov is now taking stake in private business... Do you think this will put them ahead in the world arena or will they continue to be laggards in technology?