Intel had been trading below its cumulative physical assets for a pretty long time. This means the market believes they have a path to bankruptcy. Since market

Intel had been trading below its cumulative physical assets for a pretty long time. This means the market believes they have a path to bankruptcy. Since markets are forward looking, how close it is to bankruptcy does not matter too much. In this case they needed money and the government provided a relatively low amount for a pretty significant stake in the company.