US President Donald Trump defended his administration’s decision to acquire an equity stake in Intel after being asked about reports that the US government could take a 5% stake in OpenAI. Speaking in an interview with CNBC’s Joe Kernen that aired on July 2, Trump described the Intel deal as an example of “smart government investment” in strategic technology companies, saying it had strengthened the US semiconductor industry while generating billions of dollars in gains for the government.

Trump says he asked Intel for 10% of the company

During the interview, Trump said Intel came to his administration at a time when it was facing serious challenges. He blamed previous US governments for allowing countries like Taiwan to dominate the global chip business because they never imposed tariffs. 

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He said Taiwan had taken “almost” all of the business, with South Korea holding a much smaller share. According to Trump, the US had reached a point where it was barely making computer chips anymore. 

Explaining how the deal came together, Trump said: “Well, I did something with Intel – that a lot of people don’t know about and talk about, but it was, I, you know, they had problems with things, and they got hurt badly, because no president ever charged tariffs, and Taiwan literally took 100% of the business, almost. Mostly Taiwan, but South Korea a little bit. But mostly Taiwan. … Right now, you know, we had virtually nothing. We didn’t make chips anymore.”

He further explained, “And Intel came in. They had a problem. I said, I can solve your problem, but I want 10% of the company. They said, what? I said, I want 10% of the company. And he agreed to, and the stock has gone through, so I think we made 60 or $70 billion in eight months.” 

Trump said some people questioned whether such an arrangement was appropriate for the government. “Somebody said that’s not very American. I said, ‘No, I think it’s very American, actually.’ And I’ve done that with other deals.” 

What was the Intel agreement? 

The Intel agreement was announced in August 2025. Under the deal, the US government invested $8.9 billion in Intel’s common stock. In return, the government received about a 9.9% to 10% ownership stake by buying 433.3 million newly issued shares at $20.47 each. 

The money came from funds that had already been set aside under the CHIPS and Science Act but had not yet been spent, along with funding linked to secure semiconductor programmes. 

The investment was meant to help Intel expand chip manufacturing inside the United States and strengthen production of advanced semiconductors. Trump said the company’s stock has risen since then, arguing that the government’s investment has generated massive gains.

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OpenAI considers giving US government 5% stake: Report

According to Financial Times, OpenAI is holding early-stage discussions about giving the US government a 5% equity stake in the company. Based on OpenAI’s estimated valuation of $852 billion, the proposed stake would be worth around $42.6 billion.

The idea is still at a conceptual stage and has not been finalised. According to the report, the proposal is being led by OpenAI CEO Sam Altman. The plan is aimed at easing regulatory tensions between the company and the Trump administration. In recent months, the administration has reportedly delayed the rollout of some advanced AI models over concerns related to cybersecurity and national security. The proposal could also help reduce political pressure as OpenAI prepares for a possible initial public offering (IPO).

Trump says US is in a ‘Golden Age’

The Intel discussion was part of a bigger conversation about the US economy and the country’s future. Kernen began the interview by pointing to the strong performance of financial markets and asked Trump what the upcoming 250th anniversary of the United States meant to him.

Trump described the current period as a “Golden Age.” He said more factories are being built than ever before, employment is at record levels, workers are earning more money and retirement savings have grown sharply. 

“We have more factories being built today than ever before. We have more people working today than at any time ever in the history of our country, and people making more money than they’ve ever made before. 401(k)s are up at levels that they’ve never seen before, up 80 and 90% and the stock market’s at an all-time high.” 

He also compared the current economy with a ‘weaker situation’ inherited from the previous administration, saying his policies have helped bring manufacturing back to the United States. Trump said tariffs and reciprocal trade policies are important for protecting American industries. He connected those policies to Intel’s situation, arguing they are necessary to reduce dependence on foreign chip makers, especially those in Taiwan.