US Government Pursues Historic Intel Stake Amid Tech Renaissance
The US government, under the Trump administration, seeks a 10% stake in Intel, marking a shift in its relationship with the chip giant. This move, converting federal grants into stock, occurs as Intel faces challenges in the AI sector amid growing investments from global player SoftBank.
In an unprecedented move, the US government under President Donald Trump is negotiating for a 10% stake in Intel, as confirmed by Commerce Secretary Howard Lutnick. This unusual deal would convert federal grants into significant stock holdings, marking a new era of government involvement in the tech giant.
The shift comes as Intel struggles to regain its foothold in the fast-evolving tech landscape dominated by advancements in artificial intelligence. Competition from companies like Nvidia and AMD has further emphasized Intel's need for strategic alliances and investments to revitalize its operations and market share.
Adding complexity, Japanese conglomerate SoftBank has also invested heavily in Intel, acquiring a 2% stake. These developments concurrently reflect strategic moves by Trump to boost US chip production amid global trade tensions, harking back to government interventions reminiscent of the 2008 financial crisis bailout of General Motors.
(With inputs from agencies.)
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