(Bloomberg) — Intel Inc., the once-dominant chipmaker struggling to revitalize 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 a “major investor in the new company,” according to a statement issued Tuesday. The division, now known as Intel Capital, has more than $5 billion in assets.
Intel’s venture arm is one of the most famous institutional investment vehicles in Silicon Valley history, and has invested more than $20 billion in companies over the past 30 years. Historically, it focused on technology that it felt would help advance the PC and server industries, where the company still gets most of its sales. Intel Capital’s investments included ASML Holding NV and Red Hat Inc. and VMware Inc.
The move announced on Tuesday is intended to give the unit greater autonomy and allow it the freedom to raise capital from other sources.
“Standalone operations are expected to begin in the second half of 2025, at which time Intel Capital will 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 throughout the transition.”
Intel is suffering from a loss of market share and a rapidly changing chip industry that Nvidia now dominates. The company’s decline forced it to cut jobs and other expenses to preserve cash. The ordeal also contributed to the ouster of CEO Pat Gelsinger late last year. The company is currently looking for a replacement for him.
Intel is also taking other actions 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 for about $17 billion in 2015.
Another Intel acquisition, self-driving technology company Mobileye Global Inc., is due for an IPO in 2022. Although Intel will retain ownership of most of the business, Mobileye is seen as a potential source of cash for the chipmaker.
(Updates with other fundraising attempts in last paragraph.)
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