U.S. takes 10% stake in Intel as Trump flexes more power over big business
(www.nbcnews.com)
from themachinestops@lemmy.dbzer0.com to technology@lemmy.world on 24 Aug 14:00
https://lemmy.dbzer0.com/post/51802079
from themachinestops@lemmy.dbzer0.com to technology@lemmy.world on 24 Aug 14:00
https://lemmy.dbzer0.com/post/51802079
Trump tweet:
It is my Great Honor to report that the United States of America now fully owns and controls 10% of INTEL, a Great American Company that has an even more incredible future. I negotiated this Deal with Lip-Bu Tan, the Highly Respected Chief Executive Officer of the Company. The United States paid nothing for these Shares, and the Shares are now valued at approximately $11 Billion Dollars. This is a great Deal for America and, also, a great Deal for INTEL. Building leading edge Semiconductors and Chips, which is what INTEL does, is fundamental to the future of our Nation. MAKE AMERICA GREAT AGAIN! Thank you for your attention to this matter.
threaded - newest
He just nationalized Intel. That’s what conservatives are afraid of far left governments doing.
Those worthless cunt traitors never acted in good faith. FFS, they willingly elected a child rapist.
I mean, no. Owning a 10% stake is not nationalisation.
Yes. It is.
Excalty like China.
Is giving Intel freekmey better?
China’s internal market is far more cutthroat and “capitalist” than that of the USA. And less regulated. And less monopolized, except for a few services which, ahem, are mandated (WeeChat, yes).
That was their “unique path”, to move all hierarchical stuff into political entities. It look interesting on a large scale, from more “peasant-oriented” communism, kinda changing the initial Marxist picture of worker-capital relations, to this.
NB: WeeChat and WeChat are different things
oops
Further, he killed all trust in Intel. Now, no one will believe that there are no government back doors into everything they make.
Their biggest problem is that people don’t want to buy their stuff because it’s bad, they can worry about their backdoory image later
Honestly this. Their cpus melting down over the past couple years and their refusal to even acknowledge it hurt their image more than any potential backdoor could.
For real, this just further cemented me not wanting to buy any new Intel devices.
So true, I’ve officially bought my last Intel product, though I didn’t know it at the time… A shame cause I was interested in their GPUs at maybe some point in the future. From now on it’s either ARM or AMD. Can’t support a company (partially) controlled by a fascism regime.
Intel never deserved trust. They rigged the game by cheating on benchmark tests and deserve the karma they are currently enjoying.
I guess the average consumer would not be very aware of Intel being so shitty, but now everyone has a reason to be wary of them.
Intel is a us corporate they do as the US spooks tell them to do.
That's national security laws.
There’s literally Intel Management Engine or how is it called.
And they are literally an American corporation that has always benefited from American governments pressuring competitors from other countries, and that was important for MIC since 70s.
So that kind of trust was a clear no since long before I was born.
Yeah… no one who this matters to thought that anyway. Either you get Chinese or US backdoors in your hardware. This has always been true. Theoretically Intel could make some backdoorless chips for government use though, but we won’t have access to that.
Yup. They also rewrote national broadband funding criteria so starlink would win most of the state contracts for funding. If the states are stupid enough to take it, the Elon Musk will own their citizens internet. Colorado just announced Starlink won half of all the contracts and Amazon the other half(I didn’t even know Amazon provided Internet holy terrifying):
You may experience difficulty connecting to some web domains and your homepage has been preselected for you. Your monthly history will be reviewed and unpatriotic web usage will result in detainment or deportation.
Congratulations on your Freedom!
B-b-but Starlink doesn’t build infrastructure for normal broadband, does it? So they basically got a load of free money for doing nothing on a state level, just their satellites flying someplace above? I mean, there are Starlink ground stations, so there is infrastructure, just how many people would use it instead of a normal service. You know, GPON to the door, no antenna suffering in bad weather, no exorbitant prices.
“Nationalized” with a heavy dose of quote marks. The government now owns about 10% of Intel in non-voting shares. It’s basically meaningless.
10% is not “nationalized”. It’s “19.99% nationalized”. Need to have a majority stake (like 50.01%) to call it “nationalized”.
Or maybe I’m wrong.
By your maths it’s 10/50.01=19.99% nationalised, actually. :P
Yes, I’ve already fixed myself, it was sad
10% is a controlling share. The government (Trump) owns enough to make major decisions about how the company is run.
That i tried to get fired less than two weeks ago.
Literallt extortion.
Trump says US will take 10% stake in Intel because CEO wants to “keep his job”
A ten percent stake in the company and suddenly those concerning Chinese ties Trump mentioned aren’t a thing.
That part of his behavior his fans, I think, approve of.
What next, Volkswagen?
They settled for Tesla.
I feel bad for laughing at this
“Free” market.
Since Wall Street, never really was.
You’re more right than you may know.
No cliffhanger please.
Functionally, there’s no such thing. In a system that gives the most power to the company that makes the most money, that company will seek to maximize its profits. Part of maximizing profits is eliminating competition. So in a “free” market, the most successful will subvert the freedom of their competition thus eliminating the freedom in the market.
Self-correction in a market is an illusion crafted people either desperate to salvage a broken system, or those who seek to exploit them.
That’s why free market is how we call a market where anti-monopoly laws exist, work and are enforced in full.
While what you are talking about isn’t called market, it’s called jungle.
Self-correction exists when anti-monopoly laws exist, work and are enforced in full. It doesn’t exist when they don’t, because self-correction relies upon competition providing a choice and the consumer using it.
Also trade unions and customer associations are part of what we call free market. Both are voluntary, in public interest, and work when they exist. No coercion involved, thus no violation of market laws.
Also on large enough scale of the market and small enough scale of all businesses it may sometimes seem, that anti-monopoly laws are not needed. Especially since when anti-monopoly laws work, the market appears such.
Could you imagine how many times the word “socialism” would be blasted on Fox News if Biden did this?
It wouldn’t, they are one big criminal family after all.
You’re as bad as centrists/swing voters
I’m worse, I’m not ever voting at all in US elections. Being a Russian citizen and never having set foot in the US.
But they are one big criminal family. I mean, yes, in the 90s Clinton and the democratic party really had sort of a plan of battle, but they dropped the ball completely. It’s unfortunate, because had they not, maybe our world would really be similar to more utopian lines from sci-fi.
Say goodbye to 10% of your tax dollars
Well that’s a good sign
This is Small Government!
… Dick …
buying stock with the people’s money just in time for a recession
As far as government bail outs go, I think taking a portion of the company in exchange is an excellent idea. THIS orange asshole is doing it for all the wrong reasons, and will VERY likely fuck up literally everything about it, but the idea is sound.
I wonder what things would look like today if the government had taken some portion of control over all the auto manufacturers, airlines, banks, etc it has bailed out over the years instead of just giving them unsecured loans
you raise interesting questions. how do you stop some asshole president from using infinite taxpayer money to manipulate the price of a stock?
The same way SEC stops market markers from manipulating the stocks ;)
so they wont?
SEC is there to cover up corruption
I don’t know if you’ve noticed, but they already do that with zero government money.
Would look like normal capitalism of the early XIX century, give or take. Bad, but not atrocious. Bailouts definitely wouldn’t be abused as much, because, eh, they wouldn’t be free.
And the old argument that public sector management is inefficient - well, it’s not always a bad thing. It would then make sense for the government to re-privatize some of those shares, and use others for a source of income and a lever. And the companies bailed out this way would sink in power (which is good for competition), but not completely (which is good for their employees and economical stability). And, of course, I’ll repeat about source of income. Perhaps there will be no more raising taxes with such a system in place. Perhaps even some taxes it’ll be possible to simplify - any complex tax system works in favor of those who can afford to apply expertise, so those richer, and not poorer.
Also partial or full nationalization may sometimes work to good outcomes, while nationalized companies are less efficient, they also tend to retain institutional knowledge better, have more people working long on the same positions, follow labor regulations. For the telephone company or the train company or the central heating company or the public bus company it makes sense to be nationalized.
Release the Trump/Epstein files
Lol at all the conservatives screeching about “socialism” and “communism” and how they will be the downfall of our country, then slurping up Trump nationalizing part of Intel 🤣
They don’t believe in anything, just brain dead simpleton cultists who would happily stick their tongue into a rat trap if Trump told them to do it.
<img alt="" src="https://lemmy.world/pictrs/image/07cf82f2-cfe5-4d21-851d-fb5014e057d9.jpeg">
The way This Guy capitalizes Random Words drives me INSANE.
If you wanna be president of the United States, you should at least learn the language.
Also “Thank you for your attention to this matter.” has such “Facebook local area group” energy, like a Boomer shouting into the void about teenagers always loitering at the bus stop.
Isn’t he mimicking the typography of oldish “wild west style” newspapers and other print? Both with different fonts, and varying capitalization, and sizes. Yelling at you from monochrome photos.
(Never been in the USA.)
How is it a great deal for Intel?
Also interested in seeing. I’ve had weekly reoccurring purchases of Intel since their bottom dropped. My investment probably shit the bed.
Right when I was thinking of buying an intel cpu and gpu to support the company and do my little part in helping increase competition in the cpu and gpu sector. Guess I will stick with amd this time around.
Now do that with Exxon Mobil, Chevron and ConocoPhillips
If they want change, they don’t to vote on the board. They can just pass laws in Intel’s favour.
Taxpayers are now all Intel shareholders. I can’t understand what benefit this provides them.
Better than giving away billions of dollars no string attached
Fucking hilarious that this is party that starts seizing the means of production.
It was never, ever even once about states rights. It was never about fighting communism. It’s all racism, always has been.
Us Treasury is providing capital... Hardly seizing anything.
Maybe if intel was ran into the ground by idiots. They wouldn't need to be bailed out by feds.
They were already providing capital without the seizure. So yeah, this is seizing.
Intel was free to refuse the money
They are open enough about thinking some kind of late USSR, fixed against its deadlocks and broken feedback, would be the best system for them. I mean, having a one party system is very attractive, LOL.
And yeah, that crowd is about seizing whatever they want to build their idea of a better nation, with re-industrializing and so on. There are pits on the road, though.
And, honestly, never in history were many US politicians willing for the USSR to die as it did. They would, of course, ridicule the broken system and ideology, but the whole idea seemed more understandable than most European nations. And flattering.
It’s honestly funny, so - in Eastern Europe, when comparing ourselves to the USA, it’s very easy to get sympathetic to these points. Also to color blindness and being against affirmative action, and such.
Because information travels non-linearly. From here many people really think that the racism problem is solved in the US, and it’s just lazy Blacks not willing to work honestly, and that last point is racist, but if you say that American racists still think it’s wrong for a white person to marry a black person, those same people won’t believe you, it’s not part of their own kind of racism, or that American racists actually exist in huge enough numbers, they think it’s like calling others fascists here, something devalued by common usage. They’d be livid.
So - what I’m thinking is that USSR’s dead hand was, in fact, not its nuclear shield, but its ideology and state architecture, and some people want to break their own bad, but functional system in favor of their imaginary picture of USSR. Which is just as detached from reality. USSR’s checks and balances had a downside of stalling development and conserving the balance of power, nothing big got actually done. It would seem that they might actually come to the same result with far less blood, jump to 1960s USSR without a passing through 1920s-1950s, but wasting a few decades on that with a pretty clear end result would seem a bad idea.
That’s about political systems, arguing against my imagination on what they think. With re-industrialization I agree completely. In general, oursourcing labor is directly opposed to labor rights, and labor rights are what guarantees political rights.
Somehow this is okay but bailing out GM was a problem.
i just got an amd card in response :)
Oh i’ve been buying AMD for a while because Intel has been rudderless for ages
i recently got an nvidia but then i switched to linux after and nvidia is so terrible on linux so this was a good push to get a new one. :)
CPU vs GPU, not really the same thing lol
if there’s one thing that I support less than american companies, it’s the american government
Years of failed management rewarded with government bailout.
I missed something, what did Intel get in return for 10% of their company?
Your tax money
The assurance that no matter how much they mess up, they will have government backing.
Why does he always close with “Thank you for your attention to this matter”? Does he think he’s got his big boy pants on or something?
Probably heard it once and thought it was cool or saw a couple of memes with it and now it’s his brain worm.
If you had been sued as often as this guy, you’d probably be muttering random legalese in your sleep and unconsciously letting it leech into your vocab, too
.
I wish he would say, “And God have mercy on our souls.”
Until I read your comment, I thought this was satire and not the actual tweet. What in the fuck
so, AMD for me from now on then.
Yes, but also because they’re just better chips and you probably should have only been getting them to begin with. Way more power efficient, smaller process, less heat, easier to upgrade, better multi core performance, lower price; you just get a better CPU.
Note that better multicore perf is not true through the entire stack, because Intel chips have p core making them have better multicore perf in a lot of price-competitive offerings.
But the current platform is quite dead, you won’t get upgrades for it
P cores give them better single core performance. But in parallel computing AMD has the advantage and has defended it for a long time now.
I meant e-cores
So how did they get all that stock for free?
Oh got it. It’s Trump attempting to take credit for Biden’s good legislation.
Now that checks out. Thanks!
When Biden was president the Democrats passed the Chips Act, which has grants for chipmakers to build in the US. When Trump took power he basically stopped issuing these grants to companies that were set to get them.
My understanding is that basically Intel will give 10% of itself if Trump stops blocking the grants it was already set to get. I guess Intel’s thinking is that if they make the US a part owner, then Trump won’t obstruct the company so much.
This might sound like good news (kind of) in that the government is getting equity in return for the money, but I doubt Trump will enforce the original requirements and purpose of the grants, so Intel probably won’t end up finishing many of the factories it was supposed to build. It also sets a precedent that you can’t rely on goverment grants to do things as future parties may change the terms of the deal retroactively, even after you already started.
I don’t understand why they would want to build in the US? There’s plenty of places with cheaper labour.
In case of war the country needs national supply of chips to put in rockets, planes, everything really.
If you make everything in Taiwan and that’s the place that’s getting blockaded by enemy Navy…
Is there some massive geopolitical issue hovering like a guillotine over Taiwan? ;)
For that matter, it was the same problem the US then faced back when it was getting much of their electronics from Japan, as the Soviet threat loomed so large.
Because Biden paid them with grants to build in the US. It’s that simple.
Beyond that there’s stability and the likelihood of not being invaded or facing natural disasters.
There’s meant to be government, legal, and financial institution stability too.
As well as intellectual property defense, trade secrets and NDAs.
Material supplies are meant to be stable too.
When you’re investing in something as specialised as chip manufacturing, labour is a fraction of your concern. Both short and long term.
Wonder what they’re gonna use that power for, especially considering their efforts to censor history and go after people they don’t like.
Are you happy now, communists? We’re nationalizing companies.
They don’t call it the The Immortal Science for nothin’
yeah I have no idea what the fuck is happening anymore. the GOP is full pedo-junta on business…
So, I haven’t checked project 2025, but there is a Christian nationalist plan that wants to take over everything called Seven Mountains Mandate. You can just read the link, but the idea is to take over what they consider all major parts of society, including business and have a Christian Dominion.
yeah they’re fuckin nutso too. fml
I expect all the ML people to be celebrating this move towards socialism. Such a shit move but a shit admin.
Wasnt it Japan who, once again, bailed Big Sam on this issue?