Intel has just announced that it plans to spin off its venture capital arm, Intel Capital, into an independent firm. The aim? As per a Reuters report, this will give Intel Capital more independence and flexibility to raise funds from outside investors, much like other leading venture firms. While Intel will still be involved as a key investor, this change will allow Intel Capital to grow on its own and focus more on expanding its portfolio without being tied directly to Intel.
The move is expected to kick off in the second half of 2025, with Intel Capital’s current team transitioning to the new entity to ensure smooth operation during the shift.
Why this move makes sense for Intel
David Zinsner, Intel’s interim co-CEO and CFO, described the separation as a “win-win,” allowing Intel Capital to tap into new sources of capital while also helping Intel concentrate on its primary business.
This decision is part of a broader effort to streamline Intel’s operations, improve efficiency, and make the company more agile. It’s a step toward focusing on what Intel does best while letting Intel Capital find its footing and explore more opportunities in the venture world.
Intel capital’s impact and legacy
Since its inception in 1991, Intel Capital has been a massive player in the venture capital space. With over $5 billion in assets, the firm has invested in over 1,800 companies and deployed over $20 billion. In the last decade alone, its investments have generated a staggering $170 billion market value. Intel Capital has backed some of the most exciting and forward-thinking startups in areas like silicon, cloud computing, and frontier technologies, playing a key role in shaping the tech industry’s future.
The firm will have more room to grow, fund innovative startups, and drive change in the tech world by spinning off Intel Capital.
Intel’s bigger plan for restructuring
This announcement comes as Intel is undergoing some major changes. After a tough year on the stock market, the company is focused on cutting costs and simplifying its operations. Intel is also investing heavily in building new, state-of-the-art chip factories and looking to breathe new life into its PC chip division.
Beyond Intel Capital, the company is spinning off other businesses, such as Altera, and is working to turn its foundry operations into a separate entity. These moves are all part of Intel’s plan to reshape itself for future success and ensure it’s in a good position to grow in the coming years.