Trump Says He 'Paid Zero' for the Government's $11 Billion Stake in Intel. Here's Why He's Wrong.This is corporate socialism in a MAGA hat.
Joe Lancaster
8.25.2025
President Donald Trump negotiated a deal last week for the U.S. government to take a substantial ownership stake in an American company. Despite his assurances, Trump's socialistic transaction is a terrible deal not only for the parties involved, but for the entire U.S. economy.
"It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future," Trump posted Friday on Truth Social. "The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation."
"I PAID ZERO FOR INTEL, IT IS WORTH APPROXIMATELY 11 BILLION DOLLARS," Trump added on Monday. "All goes to the USA. Why are 'stupid' people unhappy with that?"
As of this writing, Intel's market cap is around $110 billion, so a 10 percent stake would indeed be worth $11 billion. But despite what Trump says, this was not a freebie.
"Under terms of the agreement, the United States government will make an $8.9 billion investment in Intel common stock," the company announced. "The government's equity stake will be funded by the remaining $5.7 billion in grants previously awarded, but not yet paid, to Intel under the U.S. CHIPS and Science Act and $3.2 billion awarded to the company as part of the Secure Enclave program…. The $8.9 billion investment is in addition to the $2.2 billion in CHIPS grants Intel has received to date, making for a total investment of $11.1 billion."
Intel added that "under the terms of today's announcement, the government agrees to purchase 433.3 million primary shares of Intel common stock at a price of $20.47 per share, equivalent to a 9.9 percent stake in the company." According to the Financial Times, that was "below Friday's closing price of $24.80, but about the level where they traded early in August. Intel's board had approved the deal, which does not need shareholder approval."
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Source:
https://reason.com/2025/08/25/trump-says-he-paid-zero-for-the-governments-11-billion-stake-in-intel-heres-the-downside/
