When Donald Trump publicly demanded Intel CEO Lip-Bu Tan’s resignation over alleged China connections in August 2025, the chipmaker’s future hung in the balance. Less than two weeks later, Tan emerged from a pivotal Oval Office meeting with an $8.9 billion government investment that transformed Intel into a “too-strategic-to-fail” company. The dramatic turnaround came after Tan orchestrated a carefully planned meeting with Trump, joined only by Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent, Reuters reported. The 40-minute meeting with President Donald Trump proved to be the most consequential of Tan’s decades-long career, according to sources familiar with the discussions.Before the meeting, Tan enlisted powerful allies including Microsoft CEO Satya Nadella and Nvidia CEO Jensen Huang to vouch for him, two people told Reuters. He strategized with advisors on addressing Trump’s concerns about his investments in China, preparing to present himself as an American patriot despite having made some 600 investments in Chinese companies.
How Trump changed stance on Intel CEO
In a post on Truth Social in August, Trump wrote that Tan “is highly CONFLICTED and must resign, immediately. There is no other solution to this problem.” Less than a week later, Trump’s stance entirely changed. “I met with Mr. Lip-Bu Tan, of Intel, along with Secretary of Commerce, Howard Lutnick, and Secretary of the Treasury, Scott Bessent,” Trump wrote in a post on Truth Social. “The meeting was a very interesting one. His success and rise is an amazing story. Mr. Tan and my Cabinet members are going to spend time together, and bring suggestions to me during the next week. Thank you for your attention to this matter!,” wrote Trump post his meeting with Intel CEO.
Donald Trump’s equity-for-funding deal reshapes Intel’s future
The breakthrough came when Trump proposed the US receive equity in exchange for CHIPS Act funding—an idea Lutnick had discussed for weeks with government staff, according to two sources. Tan struck a deal that gave Intel $5.7 billion while making the US government its largest shareholder with a 9.9% stake.“The Art of the Deal: Intel,” Lutnick captioned a video posted after the meeting, in which Tan pledged to “make Intel great again.”Within weeks, the government backing catalyzed a $5 billion investment from Nvidia, whose CEO Huang called Tan his “long-time friend.” Trump celebrated on social media with an AI-generated image showing the US stake’s value rising 50% after Nvidia’s partnership announcement.Questions remain about Intel CEO’s technical leadershipHowever, Reuters interviews with around 20 current and former Intel employees, government advisers, and industry contacts revealed concerns about whether Tan possesses the technical expertise to restore Intel’s chipmaking dominance, despite his dealmaking prowess.Intel’s shares have risen approximately 80% since Tan’s March appointment, outpacing both the S&P 500 and Nvidia during that period. Yet manufacturing challenges persist—Nvidia recently tested Intel’s advanced 18A production process but stopped moving forward, two sources said.The government investment has given Intel unprecedented access to potential customers seeking presidential favor, fundamentally reshaping US industrial policy.
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