JUST IN: Nvidia $NVDA to take up to $2 billion equity stake in Elon Musk's xAI, Bloomberg reports. https://t.co/FFMMGaaLI6 ...

Government Investment & Market Impact - US government to take a 5% stake in Lithium Americas and a 5% stake in its underlying lithium mine [1][2] - The investment is in exchange for government loans, suggesting a trend of the US government taking equity stakes in companies needing financial support or regulatory approvals [3][4] - Expectation of more similar deals in the works, indicating a potential shift in how the US government supports strategic industries [3] - Market reaction suggests that investing alongside the government in critical mineral supply companies has been a profitable strategy [6] - A 5% stake amounts to a $65 million investment [8] Strategic Implications & Debate - These investments are viewed as strategic assets for the United States, similar to state-owned enterprises (SOEs) in China [7] - Raises questions about the role of government intervention in free markets and whether such activity is beneficial for capitalism [6] - The approach is seen as a way to get something in return for government support, rather than simply giving money away [8]

Welcome back once again. The Trump administration looking to directly intervene in private markets. This time with a potential stake in a Canadian lithium miner. Our Aean Javis in DC with more on that. Morning Aan. >> Yeah, good morning. Carl Reuters is reporting that the Trump administration is seeking an equity stake of as much as 10% of the Canadian company Lithium Americas, joining a slate of companies the government has taken ownership or revenue stakes in so far this year. Now, the leverage point here ...

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Government Intervention & Market Impact - The Trump administration proposed the US government taking a 10% equity stake in Intel, making US taxpayers the company's largest shareholder [1][2] - The president believes this deal would be beneficial for both America and Intel, viewing the US as a partner to the company [2] - This move is considered unusual, especially since the US is not currently in a financial crisis, unlike the 2008-2009 period [3] - The president has a history of intervening in private companies, such as pressuring the Fed, acquiring a golden share in US Steel, and announcing Coca-Cola's switch to real cane sugar [4] - The White House suggested that the government is expected to take more stakes in companies [5] - Such government intervention in private business contrasts with free market and capitalist principles [7] Intel's Performance - Intel has been struggling to compete with its rivals, with its stock down more than 50% over the last 5 years [3] Political & Ideological Implications - The president's actions contradict previous criticisms of Democrats as socialists or communists for government control of private industry [6] - The proposed deals are impacting private business, which is the opposite of free markets and capitalism [7]

Potential Investment & Negotiation - The US President proposed that Intel should give 10% of the company to the US, which equates to approximately $10 billion [2] - Initially, the President indicated Intel's CEO agreed to the 10% deal [2] - A White House official described the conversation as ongoing, with many details still to be agreed upon [3][4] - The final terms, including the US government's level of influence and the actual equity stake, are not yet finalized [4] - The meeting's outcome is uncertain, and any potential signing is not guaranteed [4][5] Key Participants - Intel CEO, Lip Boutan, is scheduled to meet with President Trump at the White House [1] - The discussion involves a potential deal where Intel would give a stake to the US government [1]

Government Stake in Semiconductor Industry - The US government is considering taking an equity stake in Intel in exchange for CHIPS Act funding, moving away from grants [1][2][8] - The proposed equity stake is viewed as a way for American taxpayers to benefit from the investment in semiconductor manufacturing [2][8] - The potential stake could be around 10% of the company [2][3][4] - The government is considering non-voting rights with the equity stake [3] National Security and Semiconductor Manufacturing - National security concerns are driving the initiative to bring semiconductor manufacturing back to the US, reducing reliance on Taiwan [1] - The US aims to create its own domestic chip production capacity, including leading-edge chips [1] - The initiative involves deals with Japan and Korea to build semiconductor infrastructure and economic capacity in America [1][10][11] Trade and Investment - Japan has offered to reduce tariffs from 25% to 15% and provide a $550 billion investment fund [10][11] - Korea has offered an additional $350 billion investment [10][11] - The combined $900 billion from Japan and Korea will be used to improve infrastructure [10][11]

Government Stake & Investment - The government is considering taking an equity stake in Intel in exchange for chips act funding, a shift from the Biden administration's grant-based approach [1][2] - The proposed equity stake is viewed as a way for the American taxpayer to benefit from the investment in semiconductor manufacturing [1][8] - The potential equity stake under discussion is around 10% of the company [1] - The government aims to secure a good return for the American taxpayer by converting grants into equity [1] Semiconductor Industry & National Security - National security concerns necessitate domestic chip manufacturing to reduce reliance on Taiwan, located 9,500 miles away from the US and only 80 miles from China [1] - The initiative aims to build infrastructure and economic capacity in America for chip manufacturing, similar to deals with Japan and Korea [1] - The government desires to have an American company capable of manufacturing US transistors [1] Chips Act & Subsidies - The Chips Act is criticized as a giveaway to wealthy companies like TSMC, which has a trillion-dollar valuation [1] - The previous administration's approach of providing grants to companies is viewed as less beneficial to the American taxpayer compared to securing equity [8] - The government asserts that converting grants into equity is a smarter and more important approach for the American taxpayer [8] Governance & Control - The government clarifies that the equity stake would be non-voting, implying no direct governance control [3] - The golden share concept used with US Steel, involving 12 promises, is mentioned as a mechanism to ensure companies fulfill their commitments [4][5] - The golden share for US Steel ensures the company lives up to its 12 promises [4][5]

Investment & Strategy - MARA deepens ties with Two Prime through a $20 million equity stake [1] - MARA is doubling down on its bitcoin yield strategy [1]