Intel has just announced that it plans to spin off its venture capital arm, Intel Capital, into an independent firm. The aim? To give Intel Capital more independence and flexibility to raise funds from outside investors, much like other leading venture firms, as per a Reuters report. 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 making the transition to the new entity to ensure everything runs smoothly 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 main 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 own 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 huge player in the venture capital space. With over $5 billion in assets, the firm has invested in more than 1,800 companies and deployed over $20 billion. In the last decade alone, its investments have generated a staggering $170 billion in 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 future of the tech industry.
By spinning off Intel Capital, the firm will now have more room to grow, fund more innovative startups, and continue driving change in the tech world.
Intel’s bigger plan for restructuring
This announcement comes as Intel works through some big changes. After a tough year on the stock market, the company is focused on cutting costs and simplifying its operations. Intel is investing heavily in building new, state-of-the-art chip factories and is 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 make sure it’s in a good position to grow in the years to come.