Intel to Fragment Investment Arm into an Independent Company

Chipmaker Intel Corp announced on Tuesday its plan to separate Intel Capital, its venture capital and investment arm, into an independent company. This strategic move is aimed at enhancing operational efficiency across Intel's core business while allowing the investment arm greater flexibility and independence.

Intel, which will remain an anchor investor in the new entity, said the transition to standalone operations is expected to be completed by the second half of 2025. The new company, which will be rebranded with a new name, will be formed with the existing Intel Capital team, ensuring continuity in expertise and operations.

David Zinsner, Intel's interim co-CEO and CFO, described the separation as a "win-win scenario", highlighting that the standalone entity would gain access to new sources of capital, enabling it to expand its investment activities. At the same time, Intel will maintain a productive long-term strategic partnership with the new company.

Founded in 1991, Intel Capital manages over $5 billion in assets and invests in innovative companies across four key areas of the tech ecosystem: silicon, frontier technologies, devices, and cloud infrastructure. Its investments are recognized for driving innovation in emerging tech fields.

Earlier on Tuesday, identity security startup Orchid Security announced that it had raised $36 million in an early-stage funding round, led by Intel Capital and Team8, showcasing the fund's active role in fostering innovation and supporting promising startups.

This separation marks a significant shift in Intel's approach, reflecting its focus on optimizing core business operations while empowering Intel Capital to expand its franchise and explore broader investment opportunities.