Intel Is Next Up for Trump's Intervention Inc.
It's Ryan Gould in New York, rounding up some of the more intriguing developments rippling through the US tech and finance sectors this week. The big headline, and one that feels increasingly emblematic of the current economic climate, is the US government's ongoing discussions about potentially making a direct investment in chip giant Intel.
This isn't just about grants or tax incentives under the CHIPS Act, mind you. We're talking about the kind of direct capital injection that usually comes from private equity or venture funds, not a sovereign government. While the specifics are still under wraps, the mere fact these conversations are happening at high levels within the administration speaks volumes. It underscores a deepening commitment to bolstering domestic chip manufacturing capabilities, viewing it as a matter of national security as much as economic competitiveness. For Intel, a company that has been pouring billions into its foundry business to compete with the likes of TSMC and Samsung, such an investment could be a significant shot in the arm. It signals a robust government belief in their turnaround strategy, particularly CEO Pat Gelsinger's audacious plan to reclaim technological leadership. But, as with any government involvement, one has to wonder about the potential strings attached and the precedent it sets for other strategically vital industries.
Meanwhile, on a somewhat different but equally telling note, investors in AI infrastructure darling CoreWeave are getting a rare opportunity to monetize some of their substantial paper gains. The company, which has seen its valuation skyrocket thanks to the insatiable demand for GPU-powered cloud services, is facilitating a secondary sale. This means early investors and employees, who've been sitting on what many describe as "life-changing" wealth from the company's meteoric rise, can finally convert a portion of their holdings into cold, hard cash.
It's a smart move for CoreWeave, allowing it to reward its early backers and talent without having to rush into a full-blown initial public offering. For a company that was valued at around $19 billion in its last funding round, and with some estimates suggesting an even higher private valuation now, this liquidity event is a testament to the frenzy surrounding AI. It also offers a fascinating contrast to the Intel situation: one company potentially needing government capital to secure its future, while another is generating so much private market excitement that it's creating opportunities for early investors to cash out long before a public debut.
Taken together, these two stories paint a vivid picture of today's tech landscape. On one hand, you have the government increasingly flexing its muscle as a strategic investor, willing to intervene directly in critical industries deemed too important to fail or to be left entirely to market forces. This "Intervention Inc." approach, whether under the current administration or a potential future one, could reshape how capital flows into foundational sectors. On the other, the CoreWeave scenario highlights the immense private capital flowing into disruptive technologies like AI, creating massive wealth and new avenues for liquidity outside traditional IPO paths. It's a complex, dynamic environment where market forces and government ambitions are increasingly intertwined, making for some truly fascinating business developments.
