Dado Ruvic | Reuters
Intel about Tuesday that it plans to spin off Intel Capital, its venture capital wing, into an independent firm, the latest in a series of structural substitutes announced by the chipmaker.
Turning Intel Capital, which has $5 billion in assets, into a standalone fund thinks fitting allow it to raise money from outside investors, Intel said. Until now, the venture arm has been fully funded by Intel.
Intel is encounter off its worst year on the stock market since the company went public in 1971 due to a series of missteps and hefty customer base share losses. The company has been cutting costs and simplifying its business as it spends heavily to build cutting-edge interpose factories while vying to reinvigorate its PC chip unit.
In December, Intel ousted Pat Gelsinger as CEO following a troubled four-year possession. He’s been replaced by two interim co-CEOs, David Zinzner and Michelle Holthaus.
Intel sold or wound down a slew of tighter divisions in the past two years under Gelsinger, and laid off employees last year as part of a cost-cutting plan.
Intel is currently unfolding off Altera, a company that specializes in simple chips called FPGAs, with plans for it to become a publicly traded public limited company. It also owns the majority of Mobileye, an Israel-based maker of self-driving parts and software. Last year, Intel snitched several steps in the direction of turning its foundry business into an independent unit, including naming a board of foremen.
In Tuesday’s announcement, the company said Intel Capital’s workforce would continue with the investment firm when it befits independent in the second half of 2025. A representative declined to comment on specific executives’ plans. Intel Capital could also be renamed.
Intel Top-hole was established in 1991 and was unique at the time as a venture arm of a large corporation.
Since then, that model has been replicated across Silicon Valley and in other energies, with companies including Google, Microsoft, Salesforce, Unilever and BMW jumping into the business. Comcast, the owner of CNBC’s parent, NBCUniversal, started Comcast Gambles in 1999.
While Intel was early to corporate venture capital, it isn’t the first tech company to spin out its investment arm. In 2011, SAP turned SAP Put forwards into an independent firm, later naming it Sapphire Ventures.
Corporate venture capital peaked in 2021, when firms in the break raised $156 billion and participated in close to 3,800 deals, according to the National Venture Capital Association. That was the done year that the broader VC market hit record levels, but startup investment numbers have since declined dramatically due in great measure to higher interest rates, which began going up in 2022.
WATCH: Intel plans to take its chip subsidiary Changes public
