Key Highlights:
Intel plans to spin off its venture capital unit, Intel Capital, into an independent firm.
The move will enable Intel Capital to raise funds from external investors.
Intel Capital established in 1991 has $5 billion in assets and could potentially undergo a rebranding.
Key Background:
Intel announced that it will spin off Intel Capital, its venture capital division, into an independent entity, marking a significant step in the company’s ongoing restructuring process. This move is designed to allow Intel Capital to raise external funds, a change from its previous model of being solely financed by Intel itself. While the spin-off is expected to take place in the second half of 2025, the company indicated that Intel Capital may also undergo a rebranding, including a potential name change.
Intel Capital, which was founded in 1991, has become a pioneering example of corporate venture capital. With $5 billion in assets, it has been a key player in funding technology startups across a range of industries. The decision to spin off the unit aligns with Intel’s efforts to simplify its operations and better position itself in a highly competitive chipmaking market. The company has been struggling with market share losses and missteps in recent years, culminating in one of its worst stock market performances in 2024.
As part of its ongoing restructuring efforts, Intel has already implemented cost-cutting measures, including workforce reductions and the sale of non-core business units. Additionally, in December 2024, Intel made a significant leadership change, replacing CEO Pat Gelsinger with interim co-CEOs, David Zinzner and Michelle Holthaus. These structural shifts are part of a broader strategy to reinvigorate Intel’s PC chip division and strengthen its position in the semiconductor market.
Intel’s decision to spin off Intel Capital is not unprecedented. Other tech giants, such as SAP and Microsoft, have made similar moves in recent years. In 2011, SAP spun off its venture arm, which later rebranded as Sapphire Ventures. Corporate venture capital reached its peak in 2021, but investment levels have since decreased due to macroeconomic factors like rising interest rates. As Intel continues to navigate a challenging market landscape, the spin-off of Intel Capital reflects the company’s commitment to strategic change and the pursuit of long-term growth.
