Intel has revealed plans to spin off its venture capital division, Intel Capital, into a standalone entity, a move the chipmaker said would grant the unit greater autonomy and flexibility to secure external investments. The separation marks the latest development in the semiconductor giant’s ongoing restructuring efforts as it navigates a challenging business landscape.
The transition will see Intel Capital begin operating independently in the second half of 2025 under a new name. The team currently managing the venture fund will move to the newly formed company, with operations expected to proceed without disruption during the handover.
Established in 1991, Intel Capital is a major player in corporate venture investing. The fund manages over $5bn in assets and has invested over $20bn across 1,800 companies. Its focus spans key areas shaping the future of technology, including silicon, frontier technologies, devices, and cloud computing. Over the last decade, Intel Capital-backed startups have contributed over $170bn in market value creation. Intel will remain an anchor investor in the newly structured venture fund, ensuring continued alignment with its strategic goals.
Part of a broader restructuring plan
The decision to separate Intel Capital is part of a series of structural changes initiated by Intel in recent years. The company has been cutting costs, divesting smaller business units, and prioritising its core operations to address mounting competition from other industry leaders such as Nvidia and TSMC. Under former CEO Pat Gelsinger, who was replaced in December 2024 by interim co-CEOs David Zinsner and Michelle Johnston Holthaus, Intel implemented significant cost-saving measures. These included layoffs and the sale or winding down of several divisions. The restructuring drive has also extended to other parts of Intel’s business. The company is spinning off Altera, a developer of FPGA technology, with plans to become a publicly traded entity.
The spin-off of Intel Capital comes amidst speculation about potential further structural changes at Intel. Speaking at the Barclays Technology Conference in San Francisco, interim co-CEOs Zinsner and Holthaus discussed the possibility of separating Intel’s product development and manufacturing operations. While these units already operate with distinct financial and operational frameworks, a formal split has yet to be decided.
Despite its impending independence, Intel Capital remains actively engaged in venture activities. In a recent announcement, the firm led a $36m funding round for Orchid Security, a startup specialising in identity-first security orchestration. Orchid Security is seen as an emerging leader in the field, reflecting Intel Capital’s ongoing commitment to backing innovative startups in critical technology sectors. The decision to restructure Intel Capital as an autonomous entity highlights Intel’s efforts to align its venture arm with the operational models of leading investment firms.
“The separation of Intel Capital is a win-win scenario as 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,” said Zinsner. “This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”
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