The Government's Intel Investment: Old Money, New Deal
The U. S. government has struck a deal with Intel, but it's not as straightforward as it seems. Instead of new cash, the government is using funds already promised to Intel under previous grants. This $8. 9 billion investment comes from two main sources:
- $5. 7 billion from the CHIPS Act
- $3. 2 billion from the Secure Enclave program
Both were awarded by the Biden administration but hadn't been paid out yet.
Political Reactions
President Trump has been vocal about this deal, calling it a win for both the country and Intel. However, he's been critical of the CHIPS Act in the past, even calling it a "horrible, horrible thing. " This raises questions about the deal's legitimacy, as some experts believe the CHIPS Act might not allow the government to convert grants into equity.
Intel's Perspective
Intel, for its part, is playing it cool. They've stated that the government's investment will be "passive, " meaning no board seats or governance rights. They're also grateful for the confidence shown by the administration.
Conclusion
This deal is a mix of old money and new politics. It's a reminder that government investments in tech aren't always as simple as they seem. It's also a chance for Intel to strengthen its position in the U. S. tech industry.