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 said.
“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 Zinsner, 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.
Intel rivals AMD and Nvidia followed suit with their own venture funds. Nvidia in particular has been aggressive with its investments, last year pouring around $1 billion into AI 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 last month 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 has had a rough go of it lately. Last October, the company posted a $16.6 billion quarterly loss — the biggest in its 56-year history. And 2024 was Intel’s worst year since going public in 1971.
In a bid to streamline operations and cut costs, Intel made moves to spin out another of its business divisions, Intel Foundry, which is responsible for chip fabrication, in September. Intel is in the midst of a $10 billion cost-reduction plan, which included laying off 15,000 staffers. And the company is said to have considered selling its driverless vehicle arm Mobileye and its enterprise and cloud networking division.
Suitors including Qualcomm have reportedly approached Intel about a possible takeover.
