Intel Plans To Spin Off $5 Billion Venture Capital Segment, Will Remain Anchor Investor

Intel Corp INTC announced Tuesday its intention to separate Intel Capital, its global venture capital arm, into a standalone fund.

The new fund will enable greater autonomy and the flexibility to attract external capital.

Intel will remain an anchor investor in the new company.

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Established in 1991, Intel Capital is a leading corporate venture investor with over $5 billion in assets under management.

Standalone operations will likely begin in the second half of 2025 when Intel Capital will operate under a new name.

The existing Intel Capital team will move to the new company, and business operations will continue throughout the transition.

In December, Bloomberg highlighted CFO Dave Zinsner, who did not rule out the possibility of selling the company's factory and product-development divisions.

Zinsner took over the position of Intel's interim co-CEO along with Michelle Johnston Holthaus following Pat Gelsinger's exit.

Intel stock plunged over 59% in the last 12 months as it failed to capitalize on the shift to artificial intelligence technology akin to the likes of Taiwan Semiconductor Manufacturing Co TSM. Nor Intel succeeded in turning around its AI accelerator chip business with the Gaudi chip akin to the likes of Nvidia Corp NVDA.

Intel restructured several smaller divisions under Gelsinger in the past two years and reduced its workforce in 2024.

Intel is spinning off-chip division Altera with plans to become a publicly traded company, CNBC reports. It also owns the largest Israeli autonomous driving company, Mobileye Global Inc MBLY. In 2024, Intel tried to turn its foundry business into an independent unit.

Investors can gain exposure to Intel through Vanguard S&P 500 ETF VOO and iShares Core S&P 500 ETF IVV.

Price Action: Intel stock is up 0.10% to $19.22 premarket at the last check on Wednesday.

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