18 January, 2025
Intel spinning of venture capital arm

Intel has announced that it is spinning off its venture capital arm, Intel Capital, as part of a broader restructuring effort following a $16.6 billion net loss in the third quarter of 2024. The move aims to cut costs and give the new standalone VC fund greater flexibility to raise external capital. As an anchor investor, Intel will remain involved with the spun-out fund.

Intel Capital has been operating for over 30 years and is one of the oldest corporate venture capital units. Despite its success, the company believes that this change aligns it more closely with other leading venture firms and presents new opportunities for growth.

The move comes as part of a broader effort to cut costs at Intel, which includes employee layoffs and reductions in operating expenses and capital expenditures. The company has struggled to compete in the market for AI chips, where competitors like Nvidia have taken significant market share.

Intel Capital is a major investor in startup semiconductor technology and chipmakers, having invested over $1 billion in the sector over the past five years.