The U.S. government is making an $8.9 billion investment in Intel common stock, giving the Trump administration a roughly 10% stake in the chipmaker, Intel and the president announced Friday.

“It is my great honor to report that the United States of America now owns and controls 10% of INTEL, a great American company with an even more incredible future,” Trump wrote in a Truth Social post Friday.

Trump claimed the deal would be mutually beneficial.

“I negotiated this deal with Lip-Bu Tan, the highly respected CEO of the company,” Trump wrote in his Truth Social post announcing the deal. “The United States paid nothing for these shares, and they are now valued at approximately $11 billion. This is a great deal for the United States, and a great deal for Intel.”

The United States will not seek direct representation on Intel’s board of directors and pledged to vote with the current board on matters requiring shareholder approval, “with limited exceptions,” according to a joint statement from the Trump administration and Intel.

This decision also comes as the United States competes with China to dominate the artificial intelligence industry.

The deal appears to rewrite the terms of the CHIPS and Science Act of 2022, under which Intel received $10.9 billion in grants to boost U.S. chip manufacturing.

The Trump administration has been putting increased pressure on the chip industry overall, including a deal to allow Nvidia and AMD to export high-tech chips to China in exchange for paying Washington the 15% of its revenue.

As with the Intel investment, it is unclear how the government would manage this novel arrangement.

On Friday, Several Democratic lawmakers have introduced a bill to limit Trump's ability to change high-tech national security policy without consulting Congress, but without support from Republican representatives, it is unlikely to advance.