The U.S. government is vying for a 10% stake in Silicon Valley pioneer Intel, the Associated Press reports.
Confirmed by U.S. Commerce Secretary Howard Lutnick on Tuesday, the unusual deal would deepen the Trump administration’s financial ties with major computer chip manufacturers and mark a sudden reversal from the president’s recent push to oust the company’s CEO.
The move follows various negotiations between the Trump administration and Intel. The investment would be made by converting federal government grants previously pledged under the Biden administration into a bushel of Intel stock that would make the U.S. government into one of Intel’s largest shareholders.
The news comes as Intel has fallen behind in recent years during an artificial intelligence boom that has strengthened its once-smaller rivals, Nvidia and Advanced Micro Devices.
