Intel plans to spin off its corporate venture arm, Intel Capital, into a standalone fund with the tech giant acting as an anchor investor. The move aims to provide greater autonomy and flexibility for the fund, which is expected to begin operating independently in 2025.
The existing Intel Capital team will remain intact, and business operations will continue as normal during the transition period. According to David Zinsner, co-CEO of Intel, the separation of Intel Capital is a win-win scenario that benefits both companies.
Intel Capital has $5 billion in assets under management and has invested over 1,800 companies across various sectors since its establishment in 1991. The fund has also deployed over $20 billion in cash investments globally.
The decision to spin off Intel Capital comes after the company’s board of directors forced out CEO Pat Gelsinger and appointed Zinsner and Michelle Johnston Holthaus as interim co-CEOs. The move is part of Intel’s efforts to streamline operations, cut costs, and increase focus across its business units.
Intel has been experiencing financial challenges in recent years, including a $16.6 billion quarterly loss in October 2023 and its worst year since going public in 1971 in 2024. The company has already started spinning off other business divisions, including Intel Foundry, which is responsible for chip fabrication, as part of a $10 billion cost-reduction plan.
The spin-off of Intel Capital is expected to be a significant move for the technology industry, following similar moves by rivals AMD and Nvidia. However, Intel’s struggles with profitability have raised concerns about its future prospects.
Source: https://techcrunch.com/2025/01/14/intel-spins-off-its-corporate-venture-arm-intel-capital-into-a-standalone-fund