President Donald Trump announced on Friday evening, August 22, 2025, that the federal government has acquired a 10% stake in Intel, a decision he framed as a win for America but one that has left many conservatives, including Rand Paul and Thomas Massie, frustrated, viewing it as an unsettling move toward government involvement in private business.
Why it matters:
This acquisition, facilitated by Trump and Commerce Secretary Howard Lutnick, marks a shift that troubles free-market advocates, who worry it blurs the line between government and corporate control, potentially setting a precedent for more federal overreach in the economy and disappointing those who prioritize individual enterprise.
Driving the news:
The deal, confirmed via Trump’s Truth Social post, involves the U.S. government purchasing 433.3 million Intel shares at $20.47 each, securing a 9.9% stake without voting rights, as part of a strategy to leverage CHIPS Act funds.
- The CHIPS Act, enacted in 2022, is a $52.7 billion bipartisan initiative to boost U.S. semiconductor manufacturing and reduce reliance on foreign supply chains, providing grants and loans to companies like Intel.
- Lutnick, on CNBC’s “Squawk on the Street,” explained the equity stake, saying, “We should get an equity stake for our money,” converting Biden-era grants into ownership.
- Trump credited negotiations with Intel CEO Lip-Bu Tan, presenting it as a boost for national security and economic strength, even though he called for his resignation a few weeks prior.
Catch up quick:
The announcement follows months of discussions to support Intel, which reported $19 billion in losses last year, using taxpayer funds to stabilize it amid global tech competition.
The intrigue:
The concern is whether this move will strengthen U.S. tech leadership or signal a troubling trend toward government influence in private companies, with figures like Rand Paul questioning if it aligns with America’s economic traditions.
Between the lines:
Behind the patriotic tone, the deal suggests a pragmatic use of CHIPS Act funds that some see as a step toward socialism, raising questions about the balance between government support and market freedom.

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