US government stake and CHIPS Act funding
The U.S. government agreed to buy 433.3M Intel shares (about 9.9% at signing) for $8.9B, funded by unpaid CHIPS grants and Secure Enclave money. Its stake is passive.
The numbers
What it is
In August 2025 the Commerce Department agreed to buy 433.3 million Intel shares at $20.47 each, for $8.9B in total. $5.7B came from unpaid CHIPS Act grants and $3.2B from the Secure Enclave program. Part of the shares is held in escrow for the Secure Enclave payments, and the escrowed-share derivative is marked to market through GAAP results.
Why it matters to the stock. The stake creates large GAAP mark-to-market swings that have nothing to do with operations. Traders should look at non-GAAP EPS to see the business underneath. A five-year warrant for an additional 5% at $20 per share can be exercised only if Intel stops owning at least 51% of Foundry.
News
Intel upsizes stock sale to $20B, priced at $95 a share
Intel upsized its common stock offering to $20 billion and priced 210,526,315 shares at $95 each.