U.S. President Trump has successfully negotiated a 10% stake acquisition agreement with Intel Corporation through a combination of pressure and incentives, intervening in private enterprise operations.
On August 28th, California's Democratic Governor Gavin Newsom described Trump's series of actions as "sickening" during a forum hosted by Politico.
During the event, Newsom referenced the matter three times, criticizing Trump for profiting through negotiations with American technology companies.
Newsom stated that if former President Biden had attempted similar agreements with companies like Intel, American society would have been "outraged."
"This is absurd, this is reckless," Newsom said. "Imagine if Biden had tried to nationalize Intel, people would be furious." He questioned Trump: "Are you kidding me?"
Newsom subsequently criticized the Trump administration twice more, describing the move as "socializing and nationalizing" companies like Intel.
He stated bluntly: "It sickens me to the core."
Recently, the Trump administration has frequently intervened in U.S. private enterprises, leaving Wall Street and Silicon Valley figures stunned.
Several weeks ago, Trump demanded that U.S. chip companies Nvidia and Advanced Micro Devices (AMD) pay the U.S. government 15% of their chip sales revenue in China in exchange for export licenses. NBC reported that Trump has been continuously breaking long-standing conventions of government-business interaction, departing from the free market principles that have long been mainstream across both major U.S. political parties.
On August 22nd, Trump announced at the White House that he had reached an agreement with Intel, acquiring a 9.9% stake in the company through an $8.9 billion investment in Intel common stock, making the U.S. government a major shareholder. The $8.9 billion includes $5.7 billion in subsidies granted to Intel under Biden's CHIPS and Science Act but not yet paid, plus another $3.2 billion in government funding.
Previously, Trump had demanded Intel CEO Pat Gelsinger resign immediately, citing alleged "ties to China." After their meeting, he changed his tune and praised Gelsinger as a "successful person." Trump specifically mentioned on the 22nd: "He came in just wanting to keep his job, but ended up bringing $10 billion in benefits to America. So we 'gladly accepted' the $10 billion."
Three days after announcing the Intel stake acquisition, Trump indicated on the 25th that he plans to adopt similar investment strategies with other large corporations to "capture as much benefit as possible."
The New York Times noted that the Trump administration's recent interventions in private enterprises continue his leadership's "transactional approach," demanding concessions from companies when they need government assistance.
NBC observed that Trump has even directly pressured companies including Coca-Cola, Walmart, and Amazon on internal business matters, requiring them to adjust product formulas and pricing to align with government interests. Trump has described the U.S. economy as "like a department store" with government-set pricing.
In an interview, Trump said: "I meet with businesses and set what I consider fair prices, and they can choose to pay or refuse."
According to a recent CNBC report, Commerce Secretary Howard Lutnick revealed that the Trump administration is interested in acquiring stakes in defense companies and is considering whether to invest in top U.S. defense contractors.
Bloomberg reported that similar deals have shocked America's business and political communities. Many business and political figures have expressed privately and publicly that Trump's new economic governance philosophy differs significantly from traditional U.S. government policies, stating "they have never seen anything like this."