(Bloomberg) — Once-dominant chipmaker Intel Corp., which is struggling to revive its business and finances, plans to spin off its venture capital arm into a separate fund with a new name.
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The chipmaker will remain an “anchor investor in the new company,” according to a statement on Tuesday. The division, currently known as Intel Capital, has more than $5 billion in assets.
Intel's venture arm is one of the best-known corporate investment vehicles in Silicon Valley history and has given more than $20 billion to businesses over the past 30 years. Historically, it has focused on technology it felt would help advance the personal computer and server industries, where the corporation still gets most of its sales. Intel Capital's investments have included ASML Holding NV, Red Hat Inc. and VMware Inc.
The move announced on Tuesday is intended to give the unit more independence and allow it the freedom to raise capital from other sources.
“Independent operations are expected to begin in the second half of 2025, at which time Intel Capital will operate under a new name,” the Santa Clara, California-based company said in a statement. “Intel Capital's existing team will transition to the new company, and business operations will continue as normal throughout the transition period.”
Intel is reeling from a loss of market share and a rapidly changing chip industry where Nvidia Corp now reigns supreme. The company's decline has forced it to cut jobs and other expenses to conserve cash. The situation has also contributed to the ouster of CEO Pat Gelsinger late last year. The company is currently looking for his successor.
Intel is also taking other steps to narrow its focus and free up capital. That includes looking for investors for its Altera unit, according to people familiar with the matter. The business, which makes programmable chips, was acquired for about $17 billion in 2015.
Another Intel acquisition, self-driving technology company Mobileye Global Inc., had an initial public offering in 2022. Although Intel has retained ownership of most of the business, Mobileye is seen as a potential source of cash for the chip maker.
(Updates with other cash-raising efforts in the last paragraph.)
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