In a recent interview, Palantir co-founder Joe Lonsdale expressed uneasiness over the U.S. government’s decision to invest $890 million in Intel. In CNBC's Squawk Box program, he pointed out that the government's participation in private enterprises' equity investment is quite unusual, and described the act as "very strange."
Lonsdale stressed that the government's provision of such huge amounts of funds to a company also disturbed him, and pointed out that this situation can be seen as a "cronyism" to some extent, that is, the government uses its power to favor related persons or specific businesses. He believes that such investment should be based on a broader public interest, such as strengthening national security, or the government should not do so.
This fund comes partly from the CHIPS and Science Act of the United States, which was passed in 2022 and aims to provide $52 billion in supplementary and tax benefits to promote semiconductor production and factory construction. Intel said in a press release that the government's equity investment will be composed of a $570 million subsidy and a $320 million security zone planning fund that aims to expand the US's semiconductor manufacturing capabilities.
Lonsdale pointed out that this kind of government investment in private enterprises usually only occurs during major crises, such as the 2008 financial crisis, and this investment is not carried out under national emergency conditions, which may create new precedents. National Economic Commission Director Kevin Hassett mentioned in CNBC last month that there may be more similar investments in the future, and compare Intel's equity investment to a master's wealth fund, which exists in many countries and aims to invest in businesses and distribute profits to citizens.
Palantir cofounder on the US taking a stake in Intel: ‘The whole thing is very weird’