(Bloomberg) — Intel Corp., the once-dominant chipmaker that has struggled to revive its business and finances, plans to spin off its venture capital arm into a separate fund with a new name.
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The chipmaker will remain an “anchor investor in the new company,” said a statement Tuesday. The division, currently known as Intel Capital, has more than $5 billion in assets.
Intel’s venture arm is one of the best-known corporate investment vehicles in Silicon Valley history, having poured more than $20 billion into companies over the past three decades. Historically, the company has focused on technology that it believed would advance the PC and server industries, where the company still makes the majority of its revenue. Intel Capital’s investments included ASML Holding NV, Red Hat Inc. and VMware Inc.
The move announced on Tuesday is aimed at giving the unit greater independence and giving it the freedom to raise capital from other sources.
“Stand-alone operations are expected to begin in the second half of 2025, after which Intel Capital will operate under a new name,” the Santa Clara, California-based company said in a statement. “The existing Intel Capital team will move to the new company and business operations will continue as normal during the transition.”
Intel is reeling from a loss of market share and a rapidly changing chip industry where Nvidia Corp. now reigns. The company’s decline has forced it to cut jobs and other expenses to preserve cash. The situation also contributed to the ouster of Chief Executive Officer Pat Gelsinger late last year. The company is currently looking for his replacement.
Intel is also taking other steps to narrow its focus and free up capital. That includes seeking investors for its Altera unit, according to people familiar with the matter. The company, which makes programmable chips, was acquired in 2015 for about $17 billion.
Another Intel acquisition, self-driving technology company Mobileye Global Inc., had an initial public offering in 2022. Although Intel retained control of the majority of the company, Mobileye is seen as a potential source of cash for the chipmaker.
(Updates with other fundraising efforts in the last paragraph.)
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