Intel has announced it will spin off its global venture capital arm Intel Capital into a standalone investment fund.
The move is designed to bring the corporate structure of Intel Capital more in line with other venture capital firms, allowing the fund to raise money from external investors.
Intel said it would remain an anchor investor in the new company. Standalone operations are expected to begin in the second half of 2025 and the fund will operate under a new name following the separation.
“The separation of Intel Capital is a win-win scenario as it provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue benefiting from a productive long-term strategic partnership,” said David Zinsner, interim co-chief executive officer and chief financial officer of Intel. “This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”
Established in 1991, Intel Capital said it has invested more than $20 billion in around 1,800 companies and currently has more than $5 billion in assets under management.
The news of the spin-out follows a 2024 during which Intel saw successive quarters of multi-billion dollar decline, 15,000 job cuts, stalling construction on proposed chips fabs, and the ’retirement’ of its CEO, Pat Gelsinger.
Earlier this week, Altera - the field-programmable gate array business Intel announced plans to spin out in February 2024 - announced it had finally relaunched as a standalone business. While the company is still owned by Intel and will maintain a strategic partnership with the chipmaker, the newly independent Altera now has greater flexibility to work with other foundries in the future.