Chipmakers Slide on Wall Street as Trump Floats Equity-for-Grants Plan

Chipmakers led tech losses on Wall Street Wednesday after reports that the Trump administration is considering taking equity stakes in companies vying for federal grants under the Biden-era CHIPS Act.

Critics warn government ownership could expose taxpayers to losses if investments sour. (Image: Nasdaq Facebook)

The U.S. government has typically taken ownership in private firms only during financial crises, such as the 2008 meltdown. Proponents argue such a move could strengthen key industries, but critics warn it could expose taxpayers to losses if investments sour.

Separately, artificial intelligence firm Anthropic announced a partnership with startup Binti, which provides a digital platform used by more than 12,000 social workers.

The collaboration aims to build tools that reduce paperwork—long a major burden in child welfare—by allowing caseworkers to transcribe family meetings and automatically generate reports.