Trump Claims US Acquires 10% of Intel Stock for Free
In a move that has sent ripples through the tech and political spheres, former President Donald Trump announced via his social media platform, Truth, that the United States now wholly owns and controls 10% of Intel's shares. Astonishingly, Trump asserted that this significant stake was acquired without any financial outlay from the U.S. government, valuing the transaction at approximately $11 billion.
This declaration comes amidst recent reports of Intel facing economic headwinds and follows closely on the heels of rumored discussions between Intel CEO Pat Gelsinger and the Trump administration. The finality of the deal, especially its zero-cost acquisition, appears to have caught many by surprise, particularly given earlier assurances from administration officials that the federal government would not seek managerial oversight of the semiconductor giant.
"It is my great honor to report that the United States of America now wholly owns and controls 10% of Intel, a great American company that has an even more incredible future. I have made this deal with Lip-Bu Tan, the respected CEO of the company. The United States paid nothing for these shares, and they are currently valued at approximately $11 billion. This is a great deal for America, and also a great deal for Intel. The creation of advanced semiconductors and chips, which is what Intel does, is fundamental to our country's future. Make America Great Again! Thank you for your attention to this matter," Trump posted on Truth.
Contradictory Statements and Unforeseen Control
The announcement starkly contrasts with recent public statements made by U.S. Commerce Secretary Howard Lutnick. Only last Tuesday, during an interview with CNBC, Lutnick emphatically dismissed any notion of governmental control over Intel. When pressed by host David Faber about potential management involvement, Lutnick’s response was a definitive, "No, no, no. Stop that." Trump's assertion of control, therefore, introduces an element of bewilderment, prompting speculation about the true nature of this state ownership. It is plausible that the control Trump refers to is not an active participation in day-to-day decisions or veto powers, but specific details remain elusive without further clarification on the deal's terms.
Lutnick's earlier post on X regarding the transaction, while less detailed, did not directly contradict Trump's broader claim, adding another layer of complexity to the situation.
Intel's Patriotic Branding and Past Criticisms
This development occurs as Intel has reportedly initiated patriotic branding initiatives, a move that could be interpreted as a response to past accusations linking the company to China. Notably, Donald Trump had previously called for Intel’s CEO to resign amid revelations of his close ties with Chinese corporations. However, the subsequent personal meeting and ongoing dialogue with the government appear to have significantly altered the landscape, paving the way for this unexpected state acquisition.
The precise mechanisms through which this 10% stake will assist Intel in navigating its current significant crisis remain unclear. Experts are weighing in, suggesting that this could signal a new era of strategic government investment in critical industries, akin to wartime industrial mobilization efforts, but the long-term implications for both Intel and U.S. technological sovereignty are yet to unfold. This move could be seen as a bold, albeit unconventional, step to shore up a cornerstone of American technological infrastructure.
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