U.S. government takes 10% stake in Intel

> the government made an $8.9 billion investment in Intel common stock, purchasing 433.3 million shares at a price of $20.47 per share, giving it a 10% stake in the company

> The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars

I don't understand. Can somebody explain to me how the government made an investement, bought shares, but paid nothing?

I think a better rephrasing is "government is giving $8.9B from the CHIPS act in exchange for a 10% stake in the company"

Depends on who you ask. Trump himself seems to think the US is getting 10% for free. I think that's a fair assessment given that these grants were already supposed to be paid out to Intel, without any kind of equity stake promised.

Worth noting that Intel is the only company that had these kinds of shenanigans pulled with their grant. Samsung, TSMC, Micron and others were granted similar funds without any kind of withholding or demands for equity from the federal government.

Getting stock in exchange of grants makes more sense than "pure" grants.

This stock can later be sold, to benefit the taxpayer.

that's not a grant. That's just buying stocks.

It's effectively a grant. The US government isn't buying existing shares. Intel is issuing new shares and selling them to the US government - so actual money is being transferred to Intel (and existing shares are being diluted as a result).

That's just buying stocks (at-the-market offering).

Nope.

When I buy stocks at market price, the company gets none of my money.

When the company issues new stocks and sells them, the company gets the money.