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[BennyBlanco]

https://www.nytimes.com/2025/08/22/technology/trump-intel-stake.html

President Trump said on Friday that Intel, the troubled Silicon Valley chipmaker, had agreed to sell the U.S. government a 10 percent stake in its business, worth $8.9 billion, in one of the largest government interventions in a U.S. company since the rescue of the auto industry after the 2008 financial crisis.

At a news conference, Mr. Trump said the agreement had come out of negotiations last week with Lip-Bu Tan, Intel's chief executive.

"I said, 'I think it would be good having the United States as your partner.' He agreed, and they've agreed to do it," Mr. Trump said. "And I think it's a great deal for them."

Intel said the United States would invest $8.9 billion in its stock, on top of $2.2 billion that the government has paid the company under the CHIPS and Science Act, a federal program signed into law in 2022 that delivered billions in grants to revive U.S. semiconductor manufacturing. The government will not take a board seat or have other governance rights at Intel.

"We are grateful for the confidence the president and the administration have placed in Intel, and we look forward to working to advance U.S. technology and manufacturing leadership," Mr. Tan said in a statement.

In a social media post, Commerce Secretary Howard Lutnick called the agreement "historic" and said it would strengthen U.S. leadership in semiconductors, which act as the brains of computers and are used in everything from toasters to cars and weapons. He included a photograph of himself beside Mr. Tan, whom he thanked "for striking a deal that's fair to Intel and fair to the American People."

Very strange. But I would prefer Intel not to go under so good.

 

[Gambit2483]

Is this even Legal?

 

[Plies]

 

[consoul]

 

[Loomy]

The last time I remember the US Government doing this was with GM in 08. When they sold their stake 5 years later, the government lost almost $11b.

 

[bender]

The last time I remember the US Government doing this was with GM in 08. When they sold their stake 5 years later, the government lost almost $11b.

That's pretty efficient by government standards.

 

[BennyBlanco]

The last time I remember the US Government doing this was with GM in 08. When they sold their stake 5 years later, the government lost almost $11b.

Well they only stand to lose nearly 9B here

 

[transformer]

The last time I remember the US Government doing this was with GM in 08. When they sold their stake 5 years later, the government lost almost $11b.

Well they paid zero dollars this time. Should avoid a loss. Worst case we break even.

 

[R3TRO]

Hopefully they bounce back.

 

[transformer]

Well they only stand to lose nearly 9B here

You are conflating the value of the stake with the price paid for the stake.

 

[I collect VHS tapes]

Is this even Legal?

We did this a lot back in 2008 during the financial crisis with AIG, GM, various banks, etc

Nothing illegal about it

 

[diffusionx]

Is this even Legal?

Obama admin bought huge chunks of banks and auto industry.

 

[MikeM]

Well they paid zero dollars this time. Should avoid a loss. Worst case we break even.

"Of the total, $5.7 billion of the government funds will come from grants under the CHIPS Act that had been awarded but not paid, and $3.2 billion will come from separate government awards under a program to make secure chips."

If i'm understanding the above correctly, the government is giving them money, just has not done so yet. Not sure where the "break even" thought is coming from. Yeah, its a grant, but still requires stock in the company to be provided which can result in a loss should the stocks continue to devalue (ignoring the grants/other "awards" that will not be paid back).

 

[ChorizoPicozo]

Intel needs saving, it's a matter of National Security!!!!

 

[LiquidMetal14]

I see what they're doing and am rooting for it to work out on both sides.

 

[Ashamam]

The thing with these types of bailouts is they are poor investments by definition. If it was a well run company you wouldn't need to do it in the first place.

 

[T-0800]

Is this even Legal?

 

[Donald mac Ronald]

Hopefully they bounce back.

 

[Dorfdad]

Excellent move to shore up American security. Leaving all these chips to be made / and circumvented by our adversaries was always risky, now you have a Big partner for Security and innovation.

 

[yogaflame]

Better than fall to Communist China.

 

[Killer8]

 

[Topher]

As an American, do I get an investor discount now?

 

[semiconscious]

socialism!...

 

[Topher]

socialism!...

Wouldn't they just take it?

 

[yogaflame]

Excellent move to shore up American security. Leaving all these chips to be made / and circumvented by our adversaries was always risky, now you have a Big partner for Security and innovation.

Protection from copyright infringement and China communist government spies.

 

[calico]

I know a lot about processors.

 

[semiconscious]

Wouldn't they just take it?

hey, one step at a time...

 

[VAVA Mk2]

Is this even Legal?

Sounds like extortion for CHIPS funds.

 

[Dane]

That's literally a bailout, there was speculation that Trump wanted TSMC to own 50% of Intel.

If they're moving that fast into it, and a week after Gamers Nexus report on Intel, the company is probably crashing really fast.

 

[simpatico]

The more you know about Intel stakeholders, the less this is surprising. Interesting stuff.

 

[Jinzo Prime]

Is this even Legal?

It's been done before when GM was crashing. I'd argue this bailout is more important, but it's still a bailout.

 

[gatti-man]

Intel is cooked. I had hoped their foundry would get sold to someone with deeper pockets. Now we get a zombie company for a few years before death

 

[FoxMcChief]

 

[FoxMcChief]

Better than fall to Communist China.

 

[StereoVsn]

https://www.nytimes.com/2025/08/22/technology/trump-intel-stake.html

Very strange. But I would prefer Intel not to go under so good.

We need Intel fabs for DoD purposes if anything so can't let them go under.

Hopefully between Gov and SoftBank investments, Intel can get enough breathing room to get their shit together.

 

[yogaflame]

The more you know about Intel stakeholders, the less this is surprising. Interesting stuff.

I think this company was also infested with twisted DEI initiatives.

 

[StereoVsn]

The thing with these types of bailouts is they are poor investments by definition. If it was a well run company you wouldn't need to do it in the first place.

Feds got their money back and more from GM. Don't depends on what happens next.

 

[Magic Carpet]

American weapons will soon be forced to rely on Chinese made chips.
Either that or start training mice and birds to steer the missiles. Like anti-tank dogs and Torpedo dolphins.

 

[MrTroubleMaker]

How many of the execs got bonuses from this...

 

[Elios83]

Trump went from asking the new CEO to resign to make a 10 billions deal with him

But I expected the government intervention sooner or later, Intel is too important, it's the last bastion before the US concedes they can't technologically compete with Asia in the chip manufacturing business anymore. It's not something you give up easily not just for prestige reasons but for all the consequences of becoming dependent from rivals.
Still it's not clear how many chances Intel has to get their fabs back in the game with advanced nodes and just throwing money isn't a guarantee.

 

[CLW]

The last time I remember the US Government doing this was with GM in 08. When they sold their stake 5 years later, the government lost almost $11b.

Yep bailout to shitty companies and unions on the grandkids dime

 

[Durin]

All I hope that comes out of this is Intel getting their shit together. To go from such a dominant position, and flounder like they have, has been sad to watch.

If we bailout a company, I want them to actually be worth it.

 

[Scrawnton]

How many of the execs got bonuses from this...

How many Trump donors are on their c-suite?

 

[Hawk The Slayer]

I don't want Intel to go out so I'm fine with this. I'm still using a Intel i7 5820k around 9 years later so I know they at least make good long lasting products.

 

[ReBurn]

How many Trump donors are on their c-suite?

Probably fewer than you think

https://www.opensecrets.org/orgs/intel-corp/summary?id=D000000804

 

[Jinzo Prime]

How many Trump donors are on their c-suite?

Last time I checked, the Chips Act (much of which went to Intel) was signed by a Democrat. But making sure Intel doesn't collapse is a US Nat. Security issue, not a partisan one.

 

[Cert.in.Death]

As a taxpayer, I really enjoy subsidizing the poor decisions and judgment of the management of massive US corporations.

#TooBigToFail

 

[Heimdall_Xtreme]

And the Epstein files?

 

[Gripsx]

Great another reason I stick with AMD

 

[kapshin]

Intel needs saving, it's a matter of National Security!!!!

The Pentiums!