Ex-Intel CEO says Trump’s fund could help US beat China in tech

Former Intel CEO calls fund America’s best tool

Ex-Intel CEO Pat Gelsinger surprised many by endorsing Donald Trump’s sovereign wealth fund proposal, calling it America’s “best tool” to secure leadership in semiconductors, AI, and quantum computing.

In his Wall Street Journal op-ed, Gelsinger argued that fragmented government policies aren’t keeping up with China’s focused state-backed tech investment.

He believes a fund like this could finally give America the coordinated, long-term investment approach needed to regain global tech dominance.

Gelsinger says America needs long-term patient capital

Gelsinger stressed that the U.S. private sector struggles to provide the kind of patient, long-term funding that critical technologies require.

Venture capital and Wall Street often focus on quick returns, but groundbreaking areas like quantum computing need steady investment over the years.

A sovereign wealth fund could fill this funding gap, helping promising technologies scale and ensuring that U.S. breakthroughs stay under domestic control rather than flowing to foreign investors.

A sovereign wealth fund can protect US tech dominance

Gelsinger argues that a U.S. sovereign wealth fund could serve as both shield and spear, protecting existing tech leadership while driving future advances.

From supporting national labs to helping startups commercialize, the fund would ensure America’s innovations remain American-controlled.

In Gelsinger’s view, this approach is necessary to prevent U.S. companies from losing their edge to China’s aggressive, state-backed investment model.

China’s tech strategy is a model of focused investment

Why the urgency? Gelsinger pointed directly to China’s coordinated approach to technology development. Beijing channels billions into AI, quantum computing, and semiconductors through its National Venture Capital Guidance Fund.

This massive state support distorts global markets, disadvantaging U.S. companies. Gelsinger believes America risks ceding the technologies shaping the next century without similar strategic backing.

US venture capital can’t match China’s state-backed cash

The former Intel chief notes that while the U.S. innovation ecosystem remains strong, private investors aren’t equipped for long-term battles. Wall Street’s preference for short-term gains means foundational technologies often get underfunded.

In contrast, China’s state funds bet big on technologies they deem strategically important, regardless of immediate profits. Gelsinger says a sovereign fund would help level this playing field for American firms.

Critics call the sovereign fund unnecessary industrial policy

Not everyone agrees with Gelsinger’s plan. Critics argue that creating a U.S. sovereign wealth fund amounts to industrial policy, something many American policymakers oppose.

Opponents fear government involvement in venture financing could stifle private innovation. However, Gelsinger counters that the fund isn’t about picking winners but providing critical early-stage support where private capital is lacking.

Gelsinger insists the fund isn’t about market interference

Anticipating backlash, Gelsinger was clear: this fund wouldn’t replace or distort private markets. Instead, it’s designed to complement them.

His argument is simple: U.S. startups are already taking investments from global sovereign funds, including China’s, potentially compromising national interests.

A domestic fund would ensure American innovators remain tied to America’s strategic priorities without stifling competition.

Transparency and independence are key to the fund’s success

Drawing lessons from global peers, Gelsinger emphasized that a U.S. sovereign wealth fund must operate transparently and independently. It should be insulated from political meddling, with strict governance rules.

His vision mirrors Norway’s $1.7 trillion fund, known for its transparency and stability. He argues that political transitions shouldn’t disrupt the fund’s long-term investment strategy; consistency is key to competing with China.

Norway’s sovereign fund model offers practical lessons

While praising Norway’s approach, Gelsinger also acknowledged key differences. Norway’s success stems from budget surpluses, something the U.S. lacks. However, the country’s long-term view and cross-party support are valuable examples.

CEO of Norway’s fund, Nicolai Tangen, cautioned that transplanting Oslo’s strategy to Washington isn’t straightforward, especially given America’s political divisions and deficit-heavy budget.

The US deficit raises questions about funding financing

Unlike Norway, the U.S. operates under multi-trillion-dollar deficits. Trump’s executive order references $5.7 trillion in federal assets as a potential funding source, but monetizing those assets requires political consensus and complex legal hurdles.

Gelsinger admits that funding the U.S. fund will be challenging, yet he insists that the strategic payoff justifies overcoming these financial obstacles.

Trump’s executive order signals serious intent

In February, Trump signed an executive order instructing the Treasury and Commerce departments to design a sovereign wealth fund plan. The focus is on promoting fiscal sustainability, reducing taxes, and boosting U.S. global tech leadership.

These departments were tasked with proposing structure, funding, governance, and investment strategies, indicating that Washington sees strategic value in Gelsinger’s endorsed approach.

Joint US-Israel fund adds urgency to the debate

Gelsinger’s call comes as the U.S. and Israel plan a $200 million joint quantum and AI fund. Targeted to launch in 2026, the fund aims to deepen regional partnerships while countering China’s growing tech clout.

Israel’s exclusion from a recent AI pact with Saudi Arabia and the UAE has heightened fears of falling behind, making America’s sovereign wealth fund proposal all the more timely.

Sovereign fund could bolster CHIPS Act investments

While the 2022 CHIPS Act bolstered semiconductor production, Gelsinger sees a sovereign wealth fund as complementary.

The CHIPS Act addresses supply chain vulnerabilities, but Gelsinger argues that a wealth fund could back research and early-stage startups, ensuring innovations don’t wither for lack of patient funding. Together, these tools could anchor America’s semiconductor independence.

America risks losing the quantum race without action

Quantum computing represents a stark example of Gelsinger’s concern. While U.S. firms like Google lead in quantum research, scaling these technologies into usable products requires long-term capital, something private markets hesitate to provide.

He warns that even America’s quantum leaders could falter without national backing, letting China seize leadership in this critical field.

Global competition makes funding a strategic necessity

In today’s world, Gelsinger argues, technology leadership equals economic and geopolitical power. China’s strategic investment isn’t just about profits but global influence.

He believes America can’t afford to treat critical technologies as business as usual. In his view, the sovereign fund isn’t industrial policy; it’s a strategic tool to ensure the U.S. wins the tech race shaping this century.

Curious how this strategy connects to recent U.S. policy shifts? Find out more here.

Gelsinger warns that the time to act is now

In his closing argument, Gelsinger left little doubt about the stakes. America, he wrote, has the talent, infrastructure, and innovation culture to lead the world technologically, but it lacks a coherent, capital-backed strategy.

China’s head start won’t wait. For Gelsinger, the message is urgent: America must act decisively and create its sovereign wealth fund now or risk falling permanently behind.

Wondering how this race for tech dominance is reshaping the industry? See what’s happening behind the scenes here.

What do you think about if Trump fuels up the tech sector? Can it beat China in technology? Please share your thoughts and drop a comment.

Read More From This Brand:

• The best of 2025 tech so far includes these top gadgets
• Canada drops digital services tax, easing tensions with U.S. tech giants
• US rolls back chip design restrictions on China after London trade talks

Don’t forget to follow us for more exclusive content on MSN.

If you liked this story, you’ll LOVE our FREE emails. Join today and be the first to get stories like this one.

This slideshow was made with AI assistance and human editing.