U.S. Government Finalizes Deal For 10% Equity Stake In Intel, Will Release $8.87 Billion In Funding

Update 8/22/25 1657EST: Bloomberg is reporting that the deal will see the U.S. government acquiring 433.3 million shares of Intel at $20.47 per share. The government will be “passive” owners with no board members and agrees to vote with the company’s board of directors. The government’s stake will be funded by $5.7 billion in award grants, the report says, and the government will get a warrant for an additional 5% of the company that can be exercised under certain conditions.

Bloomberg writes:

Under the Friday agreement, the US will receive 433,323,000 shares of common stock — representing 9.9% of the fully diluted common shares in Intel — with the government pledging to release nearly $8.87 billion in funding under the Chips and Science Act, people familiar with the terms said, speaking on condition of anonymity to outline the deal before it was formally unveiled. That represents the remaining Chips Act funding that was awarded but not yet distributed to Intel, they said. The shares are non-voting and there is no board seat for the US government, according to the people. Tan was at the Commerce Department building on Friday finalizing the deal.

“This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge,” Commerce Secretary Howard Lutnick wrote on Twitter following the news.

BIG NEWS: The United States of America now owns 10% of Intel, one of our great American technology companies.

This historic agreement strengthens U.S. leadership in semiconductors, which will both grow our economy and help secure America’s technological edge.

Thanks to Intel… pic.twitter.com/AYMuX14Rgi

— Howard Lutnick (@howardlutnick) August 22, 2025

As a reminder, here’s how the negotiation started just about two weeks ago…

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President Donald Trump announced that Intel has agreed to give the US government a 10% ownership stake, according to the Wall Street Journal. 

“They’ve agreed to do it and I think it’s a great deal for them,” Trump said today. He described the deal as a “great opportunity” to help revive Intel, which he argued has slipped behind global chipmaking competitors. Intel CEO Lip-Bu Tan is expected to attend the signing.

“And I said, You know what? I think the United States should be given 10% of Intel, and he said, ‘I would consider that,’ and I said, ‘Well, I’d like you to do that,’” Trump said of his talks with Tan last week.

The agreement reportedly stems from discussions over the Chips and Science Act, with subsidies being converted into ownership shares. Such a move would represent a rare and controversial level of government intervention in a major American company, normally reserved for wartime or systemic crises. Intel declined to comment on the timing, but its stock climbed more than 6% after the news.

Commerce Secretary Howard Lutnick said the administration wants taxpayer dollars to generate direct returns, not just one-time grants. Officials clarified that companies already ramping up US investments—like TSMC and Micron—would not be pressed for similar concessions.

Trump has signaled a broader strategy of economic statecraft in his second term, seeking greater US leverage over critical industries. Earlier this year, he secured revenue-sharing deals with Nvidia and AMD on China-bound AI chip sales and obtained a “golden share” in Nippon Steel that gives him influence over US Steel.

The news comes days after it was announced that SoftBank Group is making a surprise $2 billion investment in Intel, buying shares at $23 apiece. Bloomberg first reported the SoftBank deal to purchase $2 billion worth of Intel shares at $23 apiece. As we noted last week, shares last peaked above $64 in 2021.

“For more than 50 years, Intel has been a trusted leader in innovation,” SoftBank CEO Masayoshi Son wrote in a statement. He added, “This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role.”

Intel CEO Lip-Bu Tan, a longtime SoftBank associate, added: “I appreciate the confidence he has placed in Intel with this investment.”

SoftBank’s US footprint is expanding, we noted last week. It recently bought Foxconn’s Ohio EV plant, a move that could help Stargate, as Asian chip giants like TSMC and Samsung commit billions to the ‘America First’ agenda. 

Recall, we wrote days ago about the Trump administration’s interest in taking direct stakes in US strategic companies, first with…

• US To Have ‘Golden Share’ In Nippon Steel Partnership With US Steel: Sen. McCormick

Then with:

• Rare Earth Producer MP Materials Soars 50% After US Government Becomes Largest Shareholder

Bloomberg reported last week that Washington was in talks to convert up to $10.9 billion in Chips Act grants into equity, which could have given the government roughly a 10% stake and made it Intel’s largest shareholder.

This mirrored the Pentagon’s $400 million preferred equity purchase of MP Materials last month, which we had flagged ahead of time despite others calling it “unprecedented.”

A press conference is expected Friday afternoon with more details, according to Bloomberg.