In the early hours of an August morning in Silicon Valley, Lip-Bu Tan found himself publicly attacked by U.S. President Donald Trump, who accused the newly appointed Intel chief executive of being “highly conflicted” and demanded his resignation. Tan, a prolific investor with deep ties to China before becoming CEO of Intel in March, had not yet met the president.
While leaders from Nvidia, AMD, OpenAI, Amazon, Google and Palantir had already visited Trump, Tan had focused more on Intel’s internal problems than Washington politics. Within days of the public attack, however, Intel moved quickly to secure a meeting. That roughly 40-minute Oval Office encounter would become pivotal, ending with a commitment by the U.S. government to invest billions of dollars for nearly a 10% stake in Intel.
The agreement gave Intel a “too-strategic-to-fail” aura and opened doors to partners eager to align with the administration. It also signaled a potential shift toward direct government equity stakes in companies deemed critical to national interests, a development some investors see as a new phase of U.S. industrial policy. Since Tan’s appointment, Intel shares have risen about 80%, outpacing gains in the S&P 500 and Nvidia.
Ahead of the meeting, Tan sought support from allies close to Trump, including Satya Nadella and Jensen Huang, according to people familiar with the discussions. He also prepared to address concerns over his China investments—about 600 deals, some linked to the country’s military—made through firms such as Walden International, Walden Catalyst and Celesta Capital.
Inside the Oval Office, Tan met with Trump alongside Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent. Rather than accept grant funding under the CHIPS Act, Tan agreed to an equity-for-cash arrangement that Lutnick later described as “fair.” The deal delivered $5.7 billion to Intel and positioned the U.S. government as its largest shareholder.
Momentum followed quickly. Within weeks, Tan finalized a $5 billion partnership with Nvidia, deepening collaboration between the CPU maker and the world’s leading AI chip designer. Trump publicly celebrated the investment, highlighting gains in the value of the government’s stake.
Tan’s background helps explain his effectiveness as a dealmaker. Born in Malaysia, he began his career in venture capital in the early 1980s, building a reputation for backing startups that later went public or were acquired, amassing a personal fortune estimated above $500 million. Supporters say that experience suits Intel’s current needs; critics question whether it translates into the deep engineering leadership required to regain manufacturing dominance from rivals like TSMC.
Inside Intel, Tan has moved aggressively—cutting roughly 15% of staff, flattening management layers, and elevating engineering voices. He has tapped long-time Intel engineer Pushkar Ranade as chief of staff and interim chief technology officer, while continuing to court major customers such as Amazon and Google.
The U.S. investment has already changed Intel’s standing in Washington and beyond. Technology lobbyists describe it as a “lifeline,” and additional backing soon followed, including a $2 billion investment from SoftBank. Still, challenges remain. Intel’s manufacturing arm continues to struggle with yields, and Nvidia has paused plans to use Intel’s 18A process, despite expressing interest in future nodes.
For now, Tan’s political deftness has bought Intel time, capital and credibility. Whether it also restores the company’s technological edge remains the open question.
