Intel (INTC, Financial) announced plans to spin off its venture capital arm, Intel Capital, into an independent company. This move is part of Intel's broader strategy to restructure its operations. The newly independent Intel Capital, with assets worth $5 billion, aims to raise funds from external investors. Until now, Intel Capital's funding has been sourced entirely from Intel.
Intel's stock performance last year was the worst since its initial public offering in 1971, primarily due to a series of missteps and significant market share losses. The company has been on a cost-cutting spree, simplifying its business, and investing heavily in building state-of-the-art chip factories. Additionally, Intel is making efforts to rejuvenate its personal computer chip segment.
In December, Intel replaced CEO Pat Gelsinger with interim co-CEOs David Zinzner and Michelle Holthaus. According to Intel's statement, following Intel Capital's independence in the second half of 2025, its employees will remain with the investment firm. A representative declined to comment on specific plans for the executives, and there is a possibility that Intel Capital may be renamed.
