The administration's big Intel investment comes from already awarded grants
18 days ago
- #Intel
- #CHIPS Act
- #Government Investment
- Intel announced an agreement with the Trump administration, involving an $8.9 billion investment in Intel common stock.
- The investment consists of previously awarded but unpaid grants: $5.7 billion from the CHIPS Act and $3.2 billion from the Secure Enclave program.
- Trump claimed the U.S. paid nothing for the shares, calling it a great deal for America and Intel.
- Trump has criticized the CHIPS Act, calling it a 'horrible thing' and urging its removal.
- Intel had received $2.2 billion in CHIPS Act funding and requested an additional $850 million, which remains unpaid.
- Legal challenges may arise as the CHIPS Act may not allow converting grants to equity.
- Trump previously accused Intel CEO Lip-Bu Tan of conflicts of interest but later praised him for negotiating the deal.
- Intel stated the government's investment will be passive, with no board seats or governance rights.
- TechCrunch Disrupt 2025 announced participation from Netflix, ElevenLabs, Wayve, Sequoia Capital, and others.