Intel is planning to spin off its venture capital arm as part of its ongoing restructuring efforts.

• On Tuesday, Intel announced plans to separate its venture capital arm, Intel Capital, as an independent company.
• Intel Capital plans to raise funds from external investors through a move that may result in a new name, the company announced.
• In 1991, Intel Capital was founded as a corporate venture arm, setting a precedent at the time.

Intel announced on Tuesday that it plans to spin off Intel Capital, its venture capital arm, into an independent company, as part of a series of structural changes.

Intel Capital, with $5 billion in assets, can now become a standalone fund and attract external investors, according to Intel. Until now, the venture arm has been entirely funded by Intel.

Since its inception in 1971, Intel has experienced its worst year on the stock market due to a series of errors and significant market share losses. In response, the company has been reducing expenses and streamlining its operations while simultaneously investing heavily in the construction of advanced chip factories and attempting to revitalize its PC chip division.

In December, Pat Gelsinger was removed as CEO of Intel after four years of struggle. He has been replaced by two interim co-CEOs, David Zinzner and Michelle Holthaus.

Gelsinger led Intel to divest from several smaller divisions and lay off staff in the past two years as part of a cost-cutting plan.

Intel is currently spinning off Altera, a company that specializes in simple chips called FPGAs, and plans to make it a publicly traded company. Additionally, Intel owns the majority of Mobileye, an Israel-based maker of self-driving parts and software. Last year, Intel took several steps towards turning its foundry business into an independent unit, including naming a board of directors.

Intel Capital's workforce will continue with the investment firm when it becomes independent in the second half of 2025, according to Tuesday's announcement. However, a representative declined to comment on specific executives' plans. Additionally, Intel Capital may be renamed.

In 1991, Intel Capital was founded as a corporate venture arm, setting a precedent at the time.

Since its inception in 1999, Comcast Ventures, owned by NBCUniversal, has been replicated across Silicon Valley and other industries, with companies such as Google, Facebook, and BMW joining the business.

SAP Ventures was spun out as an independent firm in 2011, before Intel established its corporate venture capital arm.

In 2021, corporate venture capital reached its peak, with firms in the space raising $156 billion and participating in 3,800 deals, according to the National Venture Capital Association. However, since then, the broader VC market has hit record levels, but startup investment numbers have declined dramatically due to higher interest rates, which began going up in 2022.

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