Trump Uses Government Funds to Buy 10% Stake in Intel

Donald Trump authorized the U.S. government to purchase 433 million shares of Intel Corporation, effectively taking a 10% ownership stake in the chipmaker. This investment follows an $8 billion grant previously offered to the company by former President Joe Biden.

The federal intervention occurs as Intel Corporation faces a significant financial decline, including the announcement that the company will lay off 20,000 workers this year. The administration's approach to private industry further expanded with a tariff exemption provided to Pfizer.

U.S. Commerce Secretary Howard Lutnick defended the acquisition as capitalism. However, the move drew sharp criticism from Democratic figures and economists, who argued that partial government ownership of a private company constitutes socialism and risks establishing a precedent for political interference in corporate boardrooms.

Governor Gavin Newsom characterized the action as a perversion of capitalism, while Senator Elizabeth Warren described the partnership as a shakedown.