As Lyutnik explained, the government is trading subsidies, benefits, contracts, and access to critical IP for equity stakes in companies.
For Intel: $8.9B in grants through the CHIPS Act and Secure Enclave program in exchange for a 9.9% ownership stake.
These stakes are pooled into a Sovereign Wealth Fund, where they are used to balance U.S. debt (assets against liabilities). Dividends from the fund can then reduce the government’s reliance on traditional tax collection.