Intel has warned regulators and shareholders that the U.S. government’s planned purchase of roughly a 10% equity stake could expose the chipmaker to legal, regulatory and commercial risks, especially in foreign markets that account for about 76% of its revenue. In a filing with the Securities and Exchange Commission, the company said the deal, which converts about $11.1 billion in CHIPS Act funding and other incentives into 433 million new shares, will dilute existing investors, reduce their voting power and could provoke restrictions in other countries. Fitch Ratings said the transaction does not improve Intel’s BBB credit rating, noting that while it bolsters liquidity, it does little to lift demand for the company’s chips. Market participants also fear the arrangement could set a precedent for deeper government involvement in private industry, a concern echoed by shareholder activists who say the agreement blurs the line between commercial and national objectives. Treasury Secretary Scott Bessent defended the move as a matter of strategic necessity and signaled that the administration is evaluating similar stakes in other critical sectors, though he ruled out acquiring an interest in Nvidia for now. Nvidia, meanwhile, issued a statement saying any government demand for a share of its revenue would “subject us to litigation,” underscoring mounting industry unease over Washington’s more interventionist industrial policy.