Microsoft co-founder Bill Gates has raised concerns over the Trump administration’s growing practice of taking equity stakes in private US companies. He warned that such moves could blur the line between regulation and ownership, create policy uncertainty, and make long-term business investment decisions more difficult.
Bill Gates Flags Concerns Over US Govt Equity Stakes
Speaking to CNBC, Gates said this approach could shift focus away from engineering innovation toward ownership control, and warned that frequent changes in government policy make it difficult for companies to properly value long-term investments. He emphasised that the government works best when its actions are predictable. He noted that before investing billions in a factory, companies need clarity on tariffs and trade policies for the next 20 years.
He also questioned the intent behind such policies, asking whether Washington is supporting new technologies in the national interest or building an investment portfolio it later wants to protect. Gates added that the “rules of the game” currently remain unclear.
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“Government operates best when it's kind of predictable, companies need to know what tariffs will look like for the next 20 years before they pour billions into a plant.Is Washington helping a nascent technology for the good of the country and treating all companies equally, or is it building a portfolio it then wants to protect? The rules of the game we're playing are pretty unclear right now,” Gates said.
Calls For Predictable Government Policy
Gates pointed out that Washington’s list of corporate shareholders is expanding, citing companies like Intel and IBM. He referred to Intel, where the US federal government reportedly acquired a 9.9 per cent stake last year for USD 8.9 billion at USD 20.47 per share, in exchange for stock. Since then, Intel’s share price has surged significantly, reaching record levels and increasing the government’s paper value of the stake to around USD 36 billion.
He also raised concerns about potential conflicts of interest when regulators hold shares in companies, questioning how decisions on antitrust reviews, defense contracts, and export controls may be influenced. Gates said the value of the Intel stake alone has risen by about USD 27 billion on paper since August, calling it good news for taxpayers but also a quiet disadvantage for competitors trying to catch up in the semiconductor industry.
Gates concluded that predictability is what drives factory investment, adding that the current structure of US government holdings does not provide that stability.
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