Donald Trump used billions in undelivered federal chip grants as leverage to extract a 10% ownership stake in Intel from its CEO. Eight months later, that stake has grown from roughly $9 billion to more than $46 billion. Trump's public response, in an interview with Fortune published Monday: he should have asked for more.
How the Government Became Intel's Biggest Shareholder
The Trump administration converted Intel's remaining CHIPS Act grants into equity last year, taking 433.3 million shares at $20.47 per share. The investment was funded through $5.7 billion in previously awarded CHIPS Act grants and $3.2 billion from the Secure Enclave program, totaling roughly $9 billion.
Trump told Fortune's editor-in-chief that Intel CEO Lip-Bu Tan "came in to see me" and that he asked for "10% ownership for free." Tan replied: "You have a deal." Eight months later, Intel trades near $125 a share, up roughly 494% from when the deal was struck. The U.S. government became Intel's single largest shareholder.
Trump's assessment, on the record with Fortune on Monday: he should have asked for more.
The Conflict Built Into the Deal
The core problem with a president holding a $46 billion government equity stake in a private company is that he controls much of what moves that stock.
Trump personally brokered a chip manufacturing deal between Intel and Apple, lobbying Apple CEO Tim Cook directly and dispatching Commerce Secretary Howard Lutnick to meet repeatedly with Cook, Elon Musk, and Jensen Huang to push Intel partnerships. Intel's share price tracked every move. The government's stake grew with each deal Trump closed.
Congress has set no guardrails to minimize conflicts of interest. The administration owns equity in a company it also regulates, contracts with, and actively lobbies on behalf of. No law requires divestment, recusal, or even disclosure of how presidential influence affected the stock.
"When the government gets in bed with private companies, Intel is now more likely to cooperate with government intrusions into private computing, and government regulatory agencies are more likely to play favorites with Intel." — CNBC analysis, February 2026
His Own Party Called It Socialism
Republican senators responded with alarm when the deal was first announced.
Sen. Rand Paul of Kentucky: "If socialism is government owning the means of production, wouldn't the government owning part of Intel be a step toward socialism?"
Sen. Thom Tillis of North Carolina: "Semi-state owned enterprise, à la CCCP. I don't believe that the U.S. government should be picking winners and losers because you won't always be right."
Sen. Todd Young of Indiana, one of the CHIPS Act's architects, said plainly: "It was not the intent of the law."
Trump's own former economic advisers joined the criticism. Larry Kudlow, his National Economic Council director during his first term, said he is "very, very uncomfortable" with the arrangement. Steve Moore, a longtime informal Trump adviser, called it "terrible, one of the bad ideas that's come out of this White House," adding: "We want the government to divest of assets, not buy assets."
The Verdict
A president uses federal grants as leverage to extract equity from a private company's CEO. He then personally lobbies other tech titans to close deals that send that company's stock from $20 to $125. The government's paper gain hits $35 billion. His own senators call it socialism. His own economic advisers call it a bad idea. Trump's public reaction, on the record: he wishes he had grabbed a bigger cut.
Public power deployed to build private leverage, funded by taxpayers, with no rules to stop it. The $46 billion is what it looks like when the operation works.
Sources
- Trump says he should've asked for 'more' of Intel when negotiating stake with CEO — CNBC
- Trump's new corporate playbook: Why the administration is taking equity stakes in companies like Intel — Fortune
- Donald Trump's government buying stake in Intel prompts GOP complaints — The Hill
- Conservatives and economists warn Trump admin. against buying stakes in U.S. companies beyond Intel — CBS News
- Trump Personally Brokered the Apple-Intel Deal That Sent Intel from $20 to $125 — 24/7 Wall St.
- 'State-owned enterprise is not the American way' — GOP senators question White House's 10% stake in Intel — Tom's Hardware
- Trump administration equity stakes pose risks to U.S. companies and markets — CNBC
Independent. Unfiltered. Unbought.
This is independent, sourced accountability reporting by Impeach 47. No corporate owners, no paywall.
Get new posts delivered free by email: impeachh47.substack.com.
Follow on X: @Impeach_47.
Follow on Threads: @impeach.47.
Follow on Instagram: @impeach.47.
Subscribe on YouTube: @impeach_47.
If this reporting is useful, the way you support us is simple: wear the movement. Every hat, shirt, and sticker from impeach47.earth is a walking billboard and the thing that keeps this research fed.
0 comments