Image Credit: Bloomberg

Intel Corp., once a leader in the chipmaking industry but currently struggling to recover its business and financial standing, is planning to spin off its venture capital division into a separate entity with a new name.  The division, currently known as Intel Capital, manages over $5 billion in assets. Intel will remain an "anchor investor" in the new company.

Intel Capital is one of Silicon Valley’s most recognized corporate investment arms, having invested over $20 billion into various companies over the past three decades. Its focus has traditionally been on technologies that support the personal computer and server industries, which remain Intel’s primary revenue sources. Notable investments include ASML, Red Hat, and VMware.

The move is intended to give the venture division more autonomy, enabling it to raise capital from additional sources. Operations are expected to transition to the new company by the second half of 2025, at which point it will operate under a new name. The current Intel Capital team will remain intact and continue business as usual during the transition.

Intel’s efforts come as it faces declining market share and increasing competition, particularly from Nvidia. This downturn has led to job cuts and other cost-saving measures, contributing to the departure of CEO Pat Gelsinger late last year. Intel is also seeking a new CEO. In addition to the venture arm spin-off, Intel is looking for investors for its Altera unit, which makes programmable chips and was acquired in 2015 for around $17 billion. Intel’s self-driving technology subsidiary,  Mobileye, which went public in 2022, could also become a source of capital.

Paraphrasing text from "Bloomberg" all rights reserved by the original author