The transition, expected to complete in the second half of 2025, will see Intel Capital rebranded and operating independently, a move aimed at “enabling greater autonomy” and offering “the flexibility to attract external capital,” according to Intel.
Intel’s co-chief executive officer and chief financial officer David Zinsner claimed that the move was "win win" for Chipzilla.
“It provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue benefiting from a productive long-term strategic partnership. This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business,” he said.
The Intel Capital team will transfer to the new fund, with operations continuing uninterrupted during the transition. Established in 1991, Intel Capital has deployed over $20 billion into more than 1,800 companies worldwide, targeting sectors like silicon, 5G, cloud, and AI. Its portfolio includes notable AI startups such as SambaNova, AI21 Labs, Figure, and Anyscale.
This announcement comes at a challenging time for Intel, which recently posted a $16.6 billion quarterly loss—its largest ever—and endured its worst year since going public in 1971. The company has been restructuring to cut costs, including spinning off its Intel Foundry business and considering sales of other divisions like Mobileye and its networking arm.
Intel Capital’s spin-off follows leadership changes at Chipzilla, with the board of directors appointing Zinsner and Michelle Johnston Holthaus as interim co-CEOs after ousting CEO Pat [kicking] Gelsinger. Holthaus leads Intel Products, a new division encompassing Intel’s consumer and data-focused operations.
With over $5 billion in assets under management and a focus on expanding AI investments, the newly independent Intel Capital will aim to solidify its reputation as a leading venture fund. The separation is positioned as a strategy to streamline Intel’s operations while capitalising on external opportunities.
Intel’s rivals, AMD and Nvidia, have bolstered their venture initiatives in recent years, with Nvidia investing heavily in AI companies.
