Not just Intel, the White House is considering a sovereign wealth fund

The 10% stake in Intel is likely just the beginning: the US government's "shopping" is set to continue as part of a broader strategy to create a sovereign wealth fund, much sought after by Donald Trump. Ignoring Republican criticism, the US president intends to move forward with deals similar to the one struck with Intel. "I paid zero" for the stake, which "is worth about $11 billion. Why aren't stupid people happy? I'd make deals like this for our country all day long. I'll also help companies that make such lucrative deals with the United States," Trump said on his social media account, dismissing criticism from his own party.

Intel's stake, along with the stake in US Steel and the request for Nvidia and AMD to pay the government part of their Chinese revenues, are initiatives that are causing considerable discontent, as well as creating confusion among major American companies. While government intervention is nothing new—Barack Obama decided to do so during the financial crisis—the president's aggressive approach is unnerving Corporate America, which is unsure what to expect from an already unpredictable president.

"In the past, the government has given money to companies without receiving anything in return," but now we're "taking" shares, explained White House economic adviser Kevin Hassett, defending the deal with Intel. Hassett added that further similar agreements could be signed as part of the creation of a sovereign wealth fund, one of Trump's obsessions. The president signed an executive order in February establishing it, raising the possibility that it could also be used for TikTok, the app that must be sold by September 17 or be banned in the United States.