U.S. takes 10% stake in Intel as Trump flexes more power over big business

The semiconductor maker has struggled to keep up in the artificial intelligence boom with rivals such as Nvidia and AMD.

The Trump administration said Friday that it had taken a 10% stake in Intel, Donald Trump’s latest extraordinary move to exert federal government control over private business.

The United States will not seek direct representation on Intel's board and pledged to vote with the current Board of Directors on matters requiring shareholder approval, "with limited exceptions," according to a joint release from the Trump administration and Intel. The move also comes as the United States vies with China in the race to dominate the artificial intelligence industry.

Trump also announced the deal on his Truth Social platform Friday, praising the company's CEO just two weeks after he called on the executive to resign over alleged China ties.