Intel is converting Venture Arm into an independent company with a new name

(Bloomberg) — Intel Corp., the once-dominant chipmaker struggling to revive its business and finances, plans to convert its venture capital arm into a separate fund with a new name.

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The chipmaker will continue to be an “anchor investor in the new company,” it said in a statement on Tuesday. The division, currently known as Intel Capital, has more than $5 billion in assets.

Intel’s venture arm is one of the most prominent corporate investment vehicles in Silicon Valley history, having poured more than $20 billion into companies over the past 30 years. Historically, the company has focused on technologies that it believed would help advance the personal computer and server industries, from which the company still generates most of its revenue. Intel Capital’s investments included ASML Holding NV, Red Hat Inc. and VMware Inc.

The move, announced Tuesday, is intended to give the unit greater independence and give it the freedom to raise capital from other sources.

“Standalone operations are expected to begin in the second half of 2025. “Intel Capital will then operate under a new name,” the Santa Clara, California-based company said in a statement. “The existing Intel Capital team will transition to the new company and business operations will continue as usual during the transition.”

Intel is suffering from loss of market share and a rapidly changing chip industry in which Nvidia Corp. now reigns. The company’s decline has forced it to cut jobs and other expenses to preserve cash. The misery also contributed to CEO Pat Gelsinger’s ouster at the end of last year. The company is currently looking for his successor.

Intel is also taking other measures to narrow its focus and free up capital. That includes finding investors for the Altera unit, people familiar with the matter say. The company, which makes programmable chips, was acquired in 2015 for around $17 billion.

Another Intel acquisition, self-driving technology company Mobileye Global Inc., had an IPO in 2022. Although Intel retained ownership of most of the business, Mobileye is seen as a potential source of cash for the chipmaker.

(Updates with other attempts to raise money in last paragraph.)

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