Intel Corp., struggling to revive its business and finances, plans to turn its venture capital arm into a separate fund with a new name. The move aims to give the unit greater independence and allow it to raise capital from other sources.
The division, currently known as Intel Capital, has over $5 billion in assets and is one of the best-known corporate investment vehicles in Silicon Valley’s history. It has invested over $20 billion in businesses over the past 30 years, focusing on technology advancing personal computers and servers.
Intel Capital’s investments have included ASML Holding NV, Red Hat Inc., and VMware Inc. The new fund will continue to be an “anchor investor,” with Intel maintaining a stake in the venture arm.
The move is part of Intel’s efforts to narrow its focus and free up capital. It comes after the company’s decline forced it to cut jobs and expenses, leading to the ouster of CEO Pat Gelsinger late last year. Intel is currently searching for his replacement.
The company has also taken steps to raise cash, including seeking investors for its Altera unit and retaining ownership of Mobileye Global Inc., a self-driving tech firm that went public in 2022.
Source: https://finance.yahoo.com/news/intel-turn-venture-arm-separate-213000524.html