Intel said it plans to spin off its corporate venture arm, Intel Capital, as an independent fund, with Intel as its “anchor investor.”
In a press release on Tuesday, Intel said the move:[enable] greater autonomy' and 'flexibility to attract external capital'. Intel expects Intel Capital to begin operating independently in the second half of 2025, at which time it will be rebranded.
Intel said the existing Intel Capital team will transition to the new fund and business operations will continue as normal during the transition period.
“The separation of Intel Capital is a win-win for both companies as it allows them to continue to benefit from a productive long-term strategic partnership while providing the Fund with access to new sources of capital to expand its franchise. A favorable scenario,” the CEO and Chief Financial Officer said in a statement. “This step supports our broader strategy to maximize the value of our assets while increasing focus and efficiency across the business.”
Intel founded Intel Capital in 1991 under former Intel Executive Vice President Les Badash. Intel Capital's original mission was to support the development of Intel's ecosystem through equity investments in strategic companies.
Intel's rivals AMD and Nvidia have followed suit with their own venture funds. Nvidia has been particularly active in investing, pouring about $1 billion into AI companies last year.
Intel Capital currently manages over $5 billion in assets. Over the past 30 years or so, we have invested in more than 1,800 companies across silicon, 5G, devices, cloud, and more. Intel Capital has deployed more than $20 billion in total cash across markets including North America, Western Europe, Israel and Asia Pacific.
Since 2014, Intel Capital has increased its investments in AI startups. Some of the company's more notable portfolio companies include AI chip startup SambaNova, Israeli AI company AI21 Labs, humanoid robot company Figure, and AI developer platform Anyscale.
Intel's decision to spin out Intel Capital comes after the company's board fired CEO Pat Gelsinger last month and replaced him with Zinsner and Michelle Johnston Holhaus as interim co-CEOs. Mr. Holthaus is also the CEO of Intel Products. The division is a recently created division that spans the chipmaker's consumer-centric organization and data center, AI, network and edge businesses.
Inter has been having a tough time lately. Last October, the company posted a quarterly loss of $16.6 billion, the largest in its 56-year history. And 2024 was Intel's worst year since going public in 1971.
In an effort to streamline operations and reduce costs, Intel in September moved to spin out another business unit, Intel Foundry, which makes chips. Intel is pursuing a $10 billion cost-cutting plan that includes laying off 15,000 employees. The company is said to be considering selling its self-driving car division, Mobileye, and its enterprise and cloud networking division.
Suitors including Qualcomm have reportedly approached Intel about a possible acquisition.