Confirmed! U.S. to Invest $8.9 Billion for 9.9% Stake in Intel

The U.S. government's investment in Intel (Intel) has been finalized. U.S. President Trump met with Intel CEO Lip-Bu Tan on Friday (8/22). After the meeting, he stated that the government would acquire approximately a 10% stake in Intel.

After meeting with Lip-Bu Tan earlier this month at the White House, Trump reversed his previous demand for Tan's resignation and was persuaded to invest in Intel. White House officials said Tan returned to the White House on Friday to meet with Trump, who afterward remarked, "He came hoping to keep his job and offered the U.S. government $10 billion, so we took the $10 billion."

U.S. Secretary of Commerce Howard Lutnick posted on X that the deal to invest in Intel had been completed. He said, "The U.S. government now owns 10% of Intel." Lutnick added that Tan had secured a deal that is "fair to both Intel and the American people."

According to Reuters, the U.S. government has agreed to invest $8.9 billion for a 9.9% stake in Intel, purchasing 403.33 million shares at $20.47 per share, a $4 discount from Friday's closing price of $24.8.

The report stated that $5.7 billion of the investment funds from the Trump administration came from unallocated CHIPS Act subsidies, while another $3.2 billion was sourced from the Pentagon's "Secure Enclave" project funds.

Before the U.S. government announced its investment, SoftBank declared on Monday that it would invest $2 billion to acquire a stake in Intel.

Daniel Morgan, a senior portfolio manager at Synovus Trust, pointed out that Intel's funding needs are substantial. He said, "Without government or other financial partners, Intel's wafer business would struggle to secure sufficient funding to continue expanding at an adequate scale."