Intel investors are wary after Intel agreed to sell the US a 10% stake. The agreement follows demands by US president Donald Trump for Intel CEO Lip-Bu Tan to resign. While supporters of the agreement say that it allows the US to profit from the $11.1bn grant Intel received as part of the CHIPS act, critics claim that it sets a precedent that the US can strongarm companies into selling stakes to the US and that it blurs the line between the public and private sectors. The last time the US bought stakes in private companies was during the 2008 financial crisis. The deal does not give the US any voting or governance rights in Intel’s operations, but some suggest the US may influence Intel in other ways. Investor Rich Weiss notes that in the absence of regulations for direct government investment, private investing is much riskier. Simultaneous private and government investment may lead to a conflict between the company’s and the country’s interests. Additionally, government investment may lead to disruption of Intel’s overseas operations. Investors are closely watching the outcome of this deal to gain insight on potential similar deals in the future.

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