The Trump administration is pursuing a deal to acquire a 10% stake in Intel, which may involve exchanging government grants for shares. White House press secretary Karoline Leavitt emphasized prioritizing American national security and economic interests. US Commerce Secretary Howard Lutnick stated the need for equitable return on the government's financial support. This initiative aims to strengthen Intel's competitiveness in the artificial intelligence chip market. Additionally, Softbank plans to invest $2 billion in Intel, leading to a nearly 7% increase in Intel's shares after the announcement.
The potential deal could involve swapping government grants for Intel shares, according to US Commerce Secretary Howard Lutnick. The move could help Intel as it struggles to compete with rivals.
The president wants to put America's needs first, both from a national security and economic perspective, White House press secretary Karoline Leavitt told reporters.
We should get an equity stake for our money. We'll get equity in return for that... instead of just giving grants away.
Intel has been contacted by the BBC for comment. The US wants a stake in Intel in exchange for grants approved during the Biden administration.
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