Intel Corp., once a dominant force in the semiconductor industry, is taking bold steps to revitalize its business by transforming its venture capital division into an independent entity with a new name. According to a statement released, the company will remain an “anchor investor” in the newly established fund, which currently manages over $5 billion in assets.
The decision represents a strategic shift for Intel’s venture arm, Intel Capital, a well-known corporate investment vehicle in Silicon Valley. Over its 30-year history, Intel Capital has invested more than $20 billion in businesses aimed at advancing personal computer and server technologies—sectors that continue to drive much of Intel’s revenue. Notable investments have included ASML Holding NV, Red Hat Inc., and VMware Inc.
Greater Independence for Intel Capital
Intel’s announcement outlined plans for Intel Capital to operate autonomously, enabling the unit to seek funding from external sources. The change is set to take effect in the second half of 2025, at which point the venture arm will adopt a new name. The existing Intel Capital team will transition to the new entity, ensuring continuity in operations during the shift.
“This move will grant the unit greater independence and the ability to raise additional capital, fostering new growth opportunities,” the Santa Clara, California-based company stated.
Facing Industry Challenges
The decision to restructure comes as Intel grapples with declining market share and rapid industry transformations that have elevated competitors like Nvidia Corp. to prominence. The company’s struggles have necessitated significant cost-cutting measures, including layoffs and expense reductions, to preserve cash flow. These challenges culminated in the departure of CEO Pat Gelsinger late last year, leaving Intel in search of new leadership.
Broader Restructuring Efforts
Beyond the venture arm’s transformation, Intel is exploring other strategies to streamline operations and bolster its financial position. The company is reportedly seeking investors for its Altera unit, which specializes in programmable chips and was acquired for $17 billion in 2015.
Intel’s acquisition of Mobileye Global Inc., a leader in self-driving technology, also remains a focal point. Mobileye went public in 2022, though Intel retained a majority stake. Industry analysts view the company as a potential source of significant cash flow, which could be leveraged to support Intel’s broader recovery efforts.
Related topic:
eBay Stock Jumps 10% Following Facebook Marketplace Partnership
