Intel is divesting Intel Capital, but will continue to invest in it. This gives the fund more autonomy, and allows Intel to focus primarily on its core business as it goes through a turbulent period.
Intel is turning Intel Capital into an independent fund. That move is being framed as a move to give the company more autonomy and flexibility to raise outside capital. Intel will continue to invest in the new fund, however. Intel is currently navigating turbulent waters, trying to get back to its core business. You can certainly view the divestiture in that light as well.
The focus of the announcement is mostly positive: with this move, Intel Capital aims to better align its structure with that of other venture capital firms. The change should provide greater autonomy and opportunities to attract outside investment. Intel will remain associated with the new fund as a major investor.
Long list of accomplishments
Intel Capital, founded in 1991, manages more than $5 billion in assets. Over the past three decades, the company has invested in more than 1,800 companies and deployed more than $20 billion in capital. According to Intel, this has created more than $170 billion in market value over the past decade. It invests mainly in start-ups operating in sectors such as silicon, cloud, devices and frontier technologies.
According to David Zinsner, interim co-CEO and CFO of Intel since the unexpected departure of Pat Gelsinger, the separation offers benefits to both parties. Intel Capital gains access to new funding sources, while Intel can better focus on its core business. The new fund will be operational in the second half of 2025 under a different name. Intel Capital’s current team is moving into the new structure, and the transition will be uninterrupted, according to Intel.