Intel formally announced an agreement with President Donald Trump’s administration on Friday afternoon, following Trump’s assertion that the government would be taking a 10% stake within the struggling chipmaker.

Whereas Intel says the federal government is making an “$8.9 billion funding in Intel widespread inventory,” the administration doesn’t seem like committing new funds. As an alternative, it’s merely making good on what Intel described as “grants beforehand awarded, however not but paid, to Intel.”

Particularly, the $8.9 billion is meant to come back from $5.7 billion awarded-but-not-paid to Intel underneath the Biden administration’s CHIPS Act, in addition to $3.2 billion additionally awarded by the Biden administration via the Safe Enclave program.

In a post on his social network Truth Social, Trump wrote, “The US paid nothing for these shares.” Nonetheless, he described this as “an awesome Deal for America and, additionally, an awesome Deal for INTEL.”

Trump has been crucial of the CHIPS Act, calling it a “horrible, horrible thing” and calling on Home Speaker Mike Johnson to “get rid” of it. In a regulatory filing in June, Intel mentioned that whereas it had already acquired $2.2 billion in CHIPS Act funding, it had subsequently requested a further $850 million in reimbursement that the federal government had not but paid.

According to The New York Times, some bankers and attorneys consider the CHIPS Act could not permit the federal government to transform its grants to fairness, opening this deal to potential authorized challenges.

Along with his concentrating on of the CHIPS Act, earlier this month Trump additionally accused Intel CEO Lip-Bu Tan of conflicts of pursuits and said he should “resign immediately.” The president was extra optimistic about Tan on Friday, saying on Reality Social that he “negotiated this take care of Lip-Bu Tan, the Extremely Revered Chief Government Officer of the Firm.”

For his half, Tan mentioned in an announcement that the corporate is “grateful for the boldness the President and the Administration have positioned in Intel, and we sit up for working to advance U.S. expertise and manufacturing management.”

Intel’s announcement additionally says the federal government’s funding can be “passive,” with no board seats or different governance and data rights.