Intel is spinning off its corporate venture arm, Intel Capital, into a stand-alone fund

Intel says 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 the move “(allows) greater autonomy” 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 changed.

Intel Capital’s existing team will move to the new fund, and business operations will continue as normal during the transition, Intel said.

“The separation of Intel Capital is a win-win scenario, as it provides the fund access to new sources of capital to expand its franchise, while allowing both companies to continue to benefit from a long-term productive strategic partnership” , Intel co-director David Zisner. -chief executive officer and chief financial officer, he 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 the Intel ecosystem through equity investments in strategic companies.

Intel’s rivals AMD and Nvidia followed suit with their venture funds. Nvidia in particular has been aggressive with its investments in the past year to pour about $1 billion in AI companies.

Today, Intel Capital has more than $5 billion in assets under management. Over the past 30 years or more, it has invested in more than 1,800 companies in sectors such as silicon, 5G, devices and cloud. In all, Intel Capital has deployed 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 notable portfolio companies are AI chip startups SambaNovaIsraeli AI company AI21 wellhumanoid robotics company Figureand AI developer platform Every scale.

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 newly created division that spans the chipmaker’s consumer-focused organization and its data center, AI, networking and enterprise leading edge.

Intel has had a tough test lately. Last October, the company posted a quarterly loss of $16.6 billion — the biggest in its 56-year history. And 2024 was Intel’s worst year since the public in 1971.

In an attempt to streamline operations and reduce costs, Intel has made moves to spin out another of its business divisions, Intel Foundry, which is responsible for chip manufacturing, in September. Intel is in the midst of a $10 billion cost-cutting 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.

Claimants including Qualcomm have reported approached Intel about a possible acquisition.