Intel Corporation announced plans to separate Intel Capital, its global venture capital arm, into an independent fund.
This move aims to align Intel Capital’s structure with other leading venture firms, granting it greater autonomy and the flexibility to attract external investors.
Intel will remain a key investor in the new entity.
Intel Capital will operate under a new name following the separation.
Standalone operations are expected to begin in the second half of 2025, and we are committed to keeping you informed of our progress along the way.
“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 David Zinsner, interim co-CEO and CFO of Intel.
“This step supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”
Established in 1991, Intel Capital is one of the world’s top corporate venture investors, managing over $5 billion in assets.
Over three decades, it has invested in more than 1,800 companies and deployed over $20 billion, creating $170 billion in market value in the last decade alone.
The firm focuses on early-stage startups in areas shaping the future of computing, including silicon, frontier technologies, devices, and cloud.
The new fund is expected to begin standalone operations in the second half of 2025 under a new name. Intel Capital’s existing team will transition to the new entity, ensuring seamless business operations during the change.
For more than 30 years, Intel Capital has been supporting and investing in standout startups to build world-changing technologies. Thanks to our talented founders and investment team, we are proud of the impact we have made on the industry.
Today is the start of an exciting new chapter in that story.
“While we have enjoyed tremendous success under our existing model, this change brings our corporate structure in line with other leading venture firms and presents exciting opportunities for our future,” said Anthony Lin is Managing Partner and Head of Intel Capital.
“We are confident that this change in structure will unlock significant opportunities for our portfolio companies. As a standalone entity, Intel Capital will have the autonomy and flexibility to raise external capital to grow our franchise and expand our network of investors and partners. This will create an even more robust and geographically diverse ecosystem of resources, expertise and market access to accelerate your growth.
“Intel will remain an anchor investor in the new firm, and we will continue to benefit from our productive long-term strategic partnership.”
Why Did Intel Cut Its Workforce – CEO Pat Gelsinger
Intel CEO Pat Gelsinger sent the following note to employees after second-quarter 2024 earnings were published on Aug. 1, 2024:
Team,
We have moved our All Company Meeting to today, following our earnings call, as we are announcing significant actions to reduce our costs. We plan to deliver $10 billion in cost savings in 2025, and this includes reducing our head count by roughly 15,000 roles, or 15% of our workforce. The majority of these actions will be completed by the end of this year.
This is painful news for me to share. I know it will be even more difficult for you to read. This is an incredibly hard day for Intel as we are making some of the most consequential changes in our company’s history. When we meet in a few hours, I’ll talk about why we’re doing this and what you can expect in the coming weeks. In advance of that, I wanted to preview some of what’s on my mind.
Simply put, we must align our cost structure with our new operating model and fundamentally change the way we operate. Our revenues have not grown as expected – and we’ve yet to fully benefit from powerful trends, like AI. Our costs are too high, our margins are too low. We need bolder actions to address both – particularly given our financial results and outlook for the second half of 2024, which is tougher than previously expected.
These decisions have challenged me to my core, and this is the hardest thing I’ve done in my career. My pledge to you is that we will prioritize a culture of honesty, transparency and respect in the weeks and months to come.
