The Lawfare Podcast Scaling Laws: Uncle Sam Buys In: Examining the Intel Deal
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Aug 29, 2025 
Peter E. Harrell, an expert in national security policy at the Center for a New American Security, joins Kevin Frazier to dissect the U.S. government's 10% stake in Intel. They discuss the implications for competition and national security, questioning the legality of such government interventions in the tech sector. The conversation also delves into the complexities of the Defense Production Act and the Government Corporation Control Act, addressing transparency and favoritism concerns in semiconductor investments.
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Departure From Typical Bailout Practice
- Historically, U.S. equity stakes in companies occurred mainly during bailouts with the intent to exit quickly.
- The Intel filing suggests the government could hold its stake indefinitely, marking a departure from past practice.
Who's Going To Sue? A Legal Calculus
- The administration may rely on the idea that companies receiving help won't sue, weakening legal challenges.
- That calculus underpins other recent interventions, like the NVIDIA revenue-sharing demands.
CHIPS Act's Flexible Legal Reading
- The CHIPS Act authorizes grants and loans to expand U.S. semiconductor manufacturing and includes flexible contracting authority.
- Lawyers could read that flexibility to allow equity, though Congress likely didn't explicitly intend equity stakes.