US government to purchase 10% stake in Intel, according to report — "A great deal," says Trump

The United States government is expected to announce the purchase of a 10% stake in Intel today, according to Bloomberg. The news broke on August 22, 2025. Details have not yet emerged.

Discussions between the government and Intel are said to have focused on a 10% stake being sold in exchange for funding previously allocated to Intel through the CHIPS Act.

Josh Wingrove from Bloomberg broke the news on X. Wingrove worked with Liana Baker from Bloomberg on the story, which is still developing. Bloomberg's Dina Baas assisted on the report.

According to Wingrove, President Trump said there is a deal in place between the government and Intel. Trump recounted an interaction with Intel to the press, stating, "You should pay us 10% of your company, and they said, 'yes.'"

Trump added that "They've agreed to do it and I think it's a great deal for them, and I think it's a great deal."

Trump vs. Intel

The US government acquiring a 10% stake in Intel would be the next major step of a dramatic saga involving the President and the chipmaker.

Just over three weeks ago, Trump took to social media to demand the resignation of Intel CEO Lip-Bu Tan.

"The CEO of INTEL is highly CONFLICTED and must resign, immediately. There is no other solution to this problem," said Trump on Truth Social.

That accusation centered around Tan's relationship with Cadence Design Systems, of which Tan used to be CEO. That company recently pled guilty to "unlawfully exporting semiconductor design tools to a restricted PRC military university," though Tan was not listed in the indictment.

Tan has also reportedly invested in hundreds of Chinese companies, though that fact on its own is not necessarily indicative of a problem. People in Tan's position are often invested in a wide portfolio of companies.

The next day, Tan responded to Trump's letter and reaffirmed his love for the United States. He also discussed his relationship with Cadence Design Systems. The CEO also expressed a desire to meet with Trump.

On August 11, Tan and Trump met and the meeting appeared to go well.

"The meeting was a very interesting one. His success and rise is an amazing story," said Trump. "Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week."

Tan also spoke highly of the meeting.

Bloomberg had previously reported that the Trump administration was interested in purchasing a stake in Intel. That interest now appears to be taking shape, as the chipmaker and the government approach a deal.

Why is Intel selling a stake to the US government?

Intel has had a rough few years. The chipmaker saw its stock drop massively in 2024 and the company reported a net loss of $1.6 billion in a single quarter in that same year.

Former CEO Pat Gelsinger left the company abruptly. During his tenure, Gelsinger pushed a major strategy shift for Intel that focused on manufacturing chips for competitors and other chipmakers. That plan did not pan out, though it's worth noting the IDM 2.0 strategy was cut short.

Following his appointment as CEO, Tan discussed a desire to "restore Intel's position as a world-class products company."

Intel is key to the US government's push for domestic chipmaking. Acquiring a stake in Intel could help secure domestic manufacturing of semiconductors, which are a vital for several industries.

Selling a stake could result in more financial security for Intel while simultaneously providing a way for the US government to better ensure stability of a major chipmaker.