U.S. Government Takes a 9.9% Stake in Intel for $8.9 Billion

On August 22, 2025, the Trump administration announced that the United States would acquire 433.3 million Intel shares at $20.47 apiece, a $8.9 billion purchase amounting to a 9.9% stake in the company. The money came from $5.7 billion in previously awarded but undisbursed CHIPS and Science Act grants and $3.2 billion from the Defense Department's Secure Enclave program. Counting $2.2 billion Intel had already received, total federal investment reached $11.1 billion. Under the agreement the government takes no board seat and no governance or information rights but agreed to vote with Intel's board on shareholder matters, with limited exceptions. Commerce Secretary Howard Lutnick said the administration would "get equity in return."

The CHIPS Act was written as a grant program tied to manufacturing milestones, not as authority to acquire equity in a public company. Converting appropriated subsidies into a federal shareholding, and pledging those shares to vote with management, gives the government a direct financial interest in a firm it also regulates and buys from, and sets a precedent for negotiating ownership stakes in exchange for federal support.

Senator Elizabeth Warren pressed Commerce Secretary Lutnick for the legal basis and terms of the transaction. Intel had reported net losses in the first two quarters of 2025 and faced competitive pressure in AI chips.