Intel said it plans to spin off its corporate venture, Intel Capital, as a private equity fund, with Intel becoming an “anchor investor.”
in one Press release on Tuesday, Intel said the move would “enable greater autonomy” and “flexibility to attract outside capital.” Intel expects Intel Capital to operate independently in the second half of 2025, at which time it will be rebranded.
The existing Intel Capital team will transition to the new fund and operations will continue as normal during the transition, Intel said.
“The separation of Intel Capital is a win-win scenario as it provides funding that will allow both companies to continue to benefit from a productive long-term strategic partnership,” David Zinsner, Intel's co-chief executive officer and chief financial officer, said in a statement. “This step supports our broader strategy to enhance the value of our assets while driving greater focus and efficiency across the business.”
Intel founded Intel Capital in 1991 under former Intel Executive Vice President Les Vadasz. Intel Capital's original purpose is to support the development of Intel's ecosystem through equity investments in strategic companies.
Intel followed rival AMD and Nvidia with their own venture funding. Nvidia in particular has been aggressive about its investments in the past year. Pouring. AI companies have about $1 billion.
Today, Intel Capital has more than $5 billion in assets under management. For the last 30 years or so; It is silicon, 5G It has invested in more than 1,800 companies in sectors such as devices and cloud. Intel Capital North America; Western Europe More than $20 billion in cash has been deployed in markets including Israel and Asia Pacific.
Since 2014, Intel Capital has increased its investments in AI startups. Some of its more notable portfolio companies include AI chip startups. Samba NovaIsraeli AI company; AI21 is good.A humanoid robot company Figand AI developer platform Any measure.
Intel's decision to spin off Intel Capital comes after the company's board of directors. He asked me to leave. CEO Pat Gelsinger Last month, Zinsner and Michelle Johnston Holthaus were named interim co-CEOs in his place. Holthaus recently created Chipmaker's customer-focused org and its data center; A.I. He is also the CEO of Intel Products, which covers network and edge businesses.
Intel has been roughing it lately. Last October, The company posted a quarterly loss of $16.6 billion — the biggest in its 56-year history. versus 2024 is Intel's worst year yet. It has been distributed to the public since 1971.
In an effort to streamline operations and reduce costs, Intel has placed its business units, Intel Foundry, in charge of chip manufacturing; In September. Intel is in the midst of a $10 billion cost-cutting program that includes laying off 15,000 employees. The company is said to be considering selling its self-driving vehicle arm Mobileye and its enterprise and cloud networking division.
There are suitors, including Qualcomm. Received news. Intel was approached about a possible takeover.