Intel spins off its corporate venture arm, Intel Capital, into a standalone fund

6 days ago 8

Intel says that it plans to spin off its corporate venture arm, Intel Capital, into a standalone fund, with Intel as an “anchor investor.”

In a press release on Tuesday, Intel said that the move will “[enable] greater autonomy” and “the flexibility to attract external capital.” Intel expects Intel Capital to begin operating independently in the second half of 2025, at which point it’ll be rebranded.

The existing Intel Capital team will move to the new fund, and business operations will continue as normal throughout the transition, Intel says.

“The separation of Intel Capital is a win-win scenario as it provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue benefiting from a productive long-term strategic partnership,” David Zisner, Intel’s co-chief executive officer and chief financial officer, said in a statement. “This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”

Intel established Intel Capital in 1991 under former Intel executive vice president Les Vadasz. Intel Capital’s original mission was to support the development of Intel’s ecosystem through equity investments in strategic companies.

Today, Intel Capital has over $5 billion in assets under management. Over the last 30 years or so, it has invested in more than 1,800 companies in sectors like silicon, 5G, devices, and cloud. Altogether, Intel Capital has deployed more than $20 billion in cash across markets including North America, Western Europe, Israel, and Asia Pacific.

Since 2014, Intel Capital has upped its investments in AI startups. Some of its more notable portfolio companies are AI chip startup SambaNova, Israeli AI company AI21 Labs, humanoid robotics firm Figure, and AI developer platform Anyscale.

Intel’s decision to spin out Intel Capital comes after the company’s board of directors forced out CEO Pat Gelsinger, and appointed in his place Zinsner and Michelle Johnston Holthaus as interim co-CEOs. Holthaus is also CEO of Intel Products, a recently created division spanning the chipmaker’s consumer-focused org as well as its data center, AI, network, and edge businesses.

Intel spun out another of its business divisions, Intel Foundry, which is responsible for chip fabrication, in September.

This story is developing and will be updated.

Kyle Wiggers is a senior reporter at TechCrunch with a special interest in artificial intelligence. His writing has appeared in VentureBeat and Digital Trends, as well as a range of gadget blogs including Android Police, Android Authority, Droid-Life, and XDA-Developers. He lives in Brooklyn with his partner, a piano educator, and dabbles in piano himself. occasionally — if mostly unsuccessfully.

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