Trump Administration Acquires Equity Stakes in U.S. Companies

U.S. companies during an interview with Fortune editor-in-chief Alyson Shontell. The administration has taken equity positions in private-sector firms rather than providing bailouts, tax subsidies, or grants. Officials have focused on companies viewed as important to national security.

Two factors typically guide decisions to acquire stakes, according to the interview: the business opportunity and the CEO's personal rapport with Trump. Trump cited Intel as an example after meeting with its chief executive. 9 percent stake worth about $10 billion in Intel.

The chipmaker had faced declining market share and substantial debt. "[Intel CEO Lip-Bu Tan] came in to see me," Trump told Shontell. " The administration held leverage through federal grants for chip production that had been approved but not yet distributed to Intel.

The company's stock rose following the transaction.

CSIS identified semiconductors, critical minerals, and nuclear energy as the main sectors targeted for equity investments. The administration has described the approach as a method to support businesses while seeking potential financial returns. Shontell noted that returns comparable to those earned by venture capital firms could eventually reduce the federal deficit if successful investments scale.