Commerce Secretary Howard Lutnick said on Friday that the U.S. government has taken a 10% stake in Intel, the embattled chipmaker that is the only American company capable of making advanced chips on U.S. soil.

Intel shares rose about 6% during trading on Friday. They were flat in extended trading.

A representative for Intel didn’t immediately respond to a request for comment on Lutnick’s social media post.

Earlier on Friday, President Donald Trump said the government should get about 10% of the company, which has a market cap of just over $100 billion.  

“They’ve agreed to do it and I think it’s a great deal for them,” Trump told reporters Friday at the White House

White House officials previously told CNBC that Trump and Intel CEO Lip-Bu Tan will meet on Friday afternoon. Lutnick’s post included a photo with Tan.

The move would mark the latest example of a distinct shift in U.S. industrial policy, with the government taking an active role in corporate America. Lutnick told CNBC this week that the U.S. government was seeking an equity stake in Intel in exchange for CHIPS Act funds.

“We should get an equity stake for our money,” Lutnick said on CNBC’s “Squawk on the Street.” “So we’ll deliver the money, which was already committed under the Biden administration. We’ll get equity in return for it.”

Lutnick said that the government’s stake would be “nonvoting.”

Earlier this week, Intel announced another major backer, when SoftBank said it would make a $2 billion investment in the chipmaker, equal to about 2% of the company.

Intel’s technology is seen as lagging Taiwan Semiconductor Manufacturing Company, which makes chips for companies including Apple, Nvidia, Qualcomm, AMD, and even Intel.

Intel has been spending billions of dollars to build a series of chip factories in Ohio, an area the company previously called the “Silicon Heartland,” where Intel would be able to produce the most advanced chips, including for AI.

But in July, Tan said in a memo to employees that there would be “no more blank checks,” and that it was slowing down the construction of its Ohio factory complex, depending on market conditions. Intel’s Ohio factory is now scheduled to start operations in 2030.

Intel said last fall that it had finalized a nearly $8 billion grant under the CHIPS and Science Act to fund its factory-building plans. The CHIPS Act was passed in 2022, under the Biden administration.

— CNBC’s David Sucherman contributed to this report.

WATCH: President Trump says Intel should transfer 10% of company to government

The price of ether rebounded to near-record levels on Friday after Federal Reserve Chair Jerome Powell hinted at upcoming rate cuts and investors returned to risk-on mode.

The second-largest cryptocurrency was last higher by 12% at $4,738.91, according to Coin Metrics. Last week, ether nearly touched its 2021 all-time high of $4,866.01, before falling as low as the $4,000 level this Tuesday.

Bitcoin rose 3% to $116,191.09.

The moves came during Powell’s annual address from Jackson Hole, Wyoming. “With policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” said Powell.

“Traders seem to have been caught completely off-sides by Powell’s dovish comments today,” said Jordi Alexander, CEO at crypto trading firm Selini Capital. “The market positioning in recent sessions has seen clear risk-off moves in assets like crypto and tech, and today’s setting up of a September rate cut is causing a panicked repositioning, which could continue through the illiquid weekend as shorts get squeezed.”

“Momentum is back on the menu with the administration and the Fed seemingly aligned on easing,” he added.

Around the time of the speech, ETH saw about $120 million in short liquidations in a one-hour period, according to CoinGlass. When traders use leverage to short ether and the coin’s price rises, they buy ETH back from the market to close their positions. In turn, this pushes the coin’s price even higher and results in more positions being liquidated.

Shares of companies focused on accumulating ether, which were some of the hardest hit this week when investors rotated out of tech names, bounced with the coin Friday. Bitmine Immersion and SharpLink Gaming jumped 14% and 12%, respectively.

Shares of Peter Thiel-backed ETHzilla tumbled more than 38% at one point Friday after the ether treasury company offered up to 74.8 million of its shares for resale. It was last down 30% following Powell’s Jackson Hole remarks.

Elsewhere, Solana-focused treasury firm DeFi Development surged 19%, and crypto exchange Coinbase advanced 6%. Stablecoin issuer Circle gained 7%, and bitcoin proxy Strategy added 5%.

Ether exchange-traded funds saw $287.6 million in inflows Thursday, which snapped a four-day streak of outflows, according to crypto research platform SoSoValue. Still, those funds collectively were on pace for their first week of net outflows ($578.9 million) since May 9 and biggest week of outflows on record.

Bitcoin ETFs on Thursday logged their fifth session in a row of outflows, bringing their total for the week to $1.15 billion. They are now on pace for their biggest week of net outflows since Feb. 28.

Kimbal Musk, the younger brother of the world’s wealthiest person, said Elon Musk “deserves to be paid,” as Tesla remains locked in a legal saga over its CEO’s pay package.

“I think my brother deserves to be paid,” Kimbal Musk said on CNBC’s “Squawk Box” on Friday. “He has zero pay for the past six to eight years. I don’t think that’s right. I’ll let Tesla shareholders make that decision, but I believe that it does need to be. He needs to be paid.”

Elon Musk isn’t paid a salary or any cash bonuses at Tesla. He is compensated through “performance awards” of valuable stock options that are granted based on Tesla hitting certain milestones.

Earlier this month, Tesla granted Elon Musk an “interim” pay package of 96 million shares, which would be worth about $29 billion. The package includes shares that vest in two years as long as he continues as CEO or in another key executive position.

The pay plan was approved by a “special committee” of the Tesla board, with Elon Musk and Kimbal Musk recusing themselves, board members Robyn Denholm and Kathleen Wilson-Thompson said in an Aug. 4 letter to shareholders.

The award came after a Delaware judge in December ordered Tesla to revoke Elon Musk’s $56 billion pay package from 2018, which was the largest compensation plan in U.S. history for a public company executive.

Before the Delaware ruling on his 2018 pay plan, in January 2024, Musk said he wanted even more pay and control of Tesla in a post on X, which was formerly known as Twitter.

“I am uncomfortable growing Tesla to be a leader in AI & robotics without having ~25% voting control,” Musk wrote at the time. “Enough to be influential, but not so much that I can’t be overturned. Unless that is the case, I would prefer to build products outside of Tesla.”

He was already building products outside of Tesla, including at his newest artificial intelligence venture, xAI, which was formed in Nevada in March 2023.

The new pay package was granted to Musk without a shareholder vote, and will only apply if Musk and Tesla lose on appeal in Delaware.

An investment group that works with pension funds, the SOC Investment Group, sent a letter this week to Nasdaq asking them to investigate Tesla, saying its board should have attained shareholder approval for the new package under Nasdaq listing policies.

Denholm and Wilson-Thompson wrote in the letter that the special committee is working to “address a longer-term CEO compensation strategy,” which it plans to put to a shareholder vote at Tesla’s upcoming annual meeting in November.

— CNBC’s Lora Kolodny contributed to this report.