Intel plans to spin off its $5 billion venture capital wing, Intel Capital, into an independent firm, allowing it to raise money from outside investors and potentially changing its name. The move is part of the chipmaker’s ongoing restructuring efforts, which come as Intel faces its worst year on the stock market since going public in 1971.
Intel Capital was established in 1991 and was unique at the time as a venture arm of a large corporation. However, the model has been replicated across Silicon Valley and other industries, with many companies jumping into corporate venture capital. The spin-off is expected to occur in the second half of 2025, when Intel Capital’s workforce will continue to work for the new independent firm.
The move is likely aimed at raising external funding for Intel Capital, which currently relies on internal funding. With this change, Intel Capital may also explore a new name. While Intel was early to corporate venture capital, it’s not the first tech company to spin out its investment arm. Other notable examples include SAP, which turned its venture arm into an independent firm in 2011.
Intel’s decision comes as the chipmaker seeks to reinvigorate its business and simplify its operations. The company has been cutting costs and investing heavily in new chip factories. It also sold or wound down several smaller divisions in recent years and laid off employees as part of a cost-cutting plan.
Source: https://www.cnbc.com/2025/01/14/intel-to-spin-off-venture-capital-arm-can-raise-outside-money.html