Trump’s large Intel investment comes from already awarded grants

Intel officially announced agreement With President Donald Trump’s administration on Friday afternoon, following Trump’s statement that the government will receive a 10% stake in the racing chipmaker.

While Intel says the government is “investing $ 8.9 billion in a common Intel stock”, the administration does not seem to commit new funds. Instead, it just does good for what Intel was described as “previously granted grants, but have not yet been paid to Intel”.

Specifically, $ 8.9 billion is supposed to come from $ 5.7 billion awarded-but they should not be paid to Intel according to Biden’s brand laws, as well as $ 3.2 billion also Awarded by Biden’s Administration through the secure Enclave program.

In a post on the social network of truth socialTrump wrote: “The United States did not pay anything for these shares.” Nevertheless, he described this as “a lot for America and also a lot for Intel”.

Trump criticizes the brands law, Named it “horrible, horrible thing” And inviting the speaker of the house Mike Johnson to “get rid of”. In a regulatory deposit In June, Intel said that while it had already received funding of $ 2.2 billion in ACT, it had then requested an additional $ 850 million in a refund that the government had not yet paid.

According to the New York TimesSome bankers and lawyers believe that the brand law may not allow the government to turn its grants into shares by opening this agreement to possible legal challenges.

In addition to targeting the brands law, earlier this month, Trump also accused the Intel Lip-Bu Tan CEO of conflicts of interest and said he would have to “resign immediately”. The president was more positive for Tan on Friday, telling Truth Social that “he negotiated this deal with Lip-bu Tan, the company’s very respectable managing director”.

For his part, Tan said in a statement that the company is “grateful for the confidence that the president and the administration have placed in Intel and we look forward to working to promote US technology and construction leadership”.

Intel’s announcement also states that the government’s investment will be “passive”, with no Board of Directors or other governance and information rights.