(Bloomberg) — Intel Corp., the once-dominant chipmaker struggling to revive its business and finances, plans to spin off its venture capital arm into a separate fund with a new name.
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The chipmaker will continue to be a “key investor in the new company,” according to a statement released Tuesday. The division, currently known as Intel Capital, has more than $5 billion in assets.
Intel’s venture capital arm is one of the best-known corporate investment vehicles in Silicon Valley history and has invested more than $20 billion in companies over the past 30 years. Historically, the company has focused on technology that it believed would help advance the personal computer and server industries, where the company still makes the bulk of its sales. Intel Capital’s investments include ASML Holding NV, Red Hat Inc. and VMware Inc.
The move announced Tuesday aims to give the unit greater independence and allow it to raise capital from other sources.
“Standalone operations are expected to begin in the second half of 2025, at which time Intel Capital will operate under a new name,” the Santa Clara, Calif.-based company said in a statement. “The existing Intel Capital team will transfer to the new company and business operations will continue as normal throughout the transition.”
Intel is reeling from a loss of market share and a rapidly evolving chip sector where Nvidia Corp. now reigns. The company’s decline forced it to cut jobs and other expenses to preserve cash flow. This predicament also contributed to the ouster of CEO Pat Gelsinger late last year. The company is currently looking for his replacement.
Intel is also taking other steps to refine its scope and free up capital. That includes seeking investors for its Altera unit, according to people familiar with the matter. The company, which makes programmable chips, was acquired for around $17 billion in 2015.
Another Intel acquisition, autonomous technology company Mobileye Global Inc., has an IPO in 2022. Although Intel has retained ownership of most of the company, Mobileye is seen as a potential source of cash for the chipmaker.
(Updates with other fundraising attempts in last paragraph.)
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