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Intel Rebounds as Tan Secures Oval Office Backing, U.S. Takes Near-10% Stake

Reuters details an equity-for-funding pact forged in a 40-minute Oval Office meeting with President Trump.

Intel's CEO Lip-Bu Tan speaks at the company's Annual Manufacturing Technology Conference in San Jose, California, U.S. April 29, 2025.  REUTERS/Laure Andrillon/File Photo

Overview

  • After President Trump publicly urged Lip-Bu Tan to resign over alleged China ties in August, the two met with Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent in the Oval Office.
  • The meeting led to a reported multibillion-dollar CHIPS Act package, including a $5.7 billion tranche that gave the U.S. a roughly 9.9% stake in Intel.
  • Within weeks, Nvidia committed about $5 billion to Intel in a follow-on move Reuters tied to the government’s backing.
  • Intel shares have climbed roughly 80% since Tan’s March appointment, even as Reuters-cited interviews question his technical depth and Intel’s manufacturing readiness.
  • Two sources told Reuters that Nvidia tested Intel’s 18A process but halted further work, underscoring ongoing production challenges.