Intel is spinning off its investment arm, Intel Capital, into a standalone fund

Intel says it plans to spin off its investment arm, Intel Capital, into a standalone fund, with Intel as the “lead investor.”

In a press release Intel said on Tuesday that the move “(will enable) greater independence” and “flexibility to attract outside capital.” Intel expects Intel Capital to begin operating independently in the second half of 2025, at which point it will be rebranded.

Intel said the existing Intel Capital team will move to the new fund, and business operations will continue as usual throughout the transition period.

“The separation of Intel Capital is a win-win scenario because it provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue to benefit from a productive long-term strategic partnership,” David Zinsner, Intel co-founder – CEO and CFO, said in a statement. . “This move supports our broader strategy to maximize the value of our assets while increasing focus and efficiency across the business.”

Intel established Intel Capital in 1991 under the leadership of 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.

Intel rivals AMD and Nvidia followed suit with their own venture funds. Nvidia in particular was aggressive in its investments last year To pour About $1 billion in artificial intelligence companies.

Today, Intel Capital has over $5 billion in assets under management. Over the past 30 years or so, it has invested in more than 1,800 companies in sectors such as silicon, 5G, hardware and cloud. In total, Intel Capital distributed more than $20 billion in cash in markets including North America, Western Europe, Israel and Asia-Pacific.

Since 2014, Intel Capital has increased its investments in AI startups. Some of its most popular portfolio companies are AI chip startups Samba Novaan Israeli artificial intelligence company AI21 LabsHumanoid Robotics Company appearanceAnd an artificial intelligence developer platform By any measure.

Intel’s decision to spin off Intel Capital follows the company’s board of directors Had to go out CEO Pat Gelsinger Last month, he replaced Zinsner and Michelle Johnston Holthaus as interim co-CEOs. Holthaus also serves as CEO of Intel Products, a recently created division that covers the chipmaker’s consumer-focused enterprise as well as its data center, AI, networking and edge businesses.

Intel has been going through a rough patch lately. Last October, the company reported 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 cut costs, Intel has taken steps to spin out another division of its business, Intel Foundry, which is responsible for manufacturing chips. In September. Intel is in the midst of a $10 billion cost-cutting plan, which includes laying off 15,000 employees. The company is said to have considered selling its self-driving vehicle arm Mobileye and its enterprise and cloud networking division.

Suitors including Qualcomm have It is said I approached Intel about a potential acquisition.