Semiconductor giant Intel has reversed its earlier decision to spin out its long-standing venture investment arm, Intel Capital. Intel CEO Lip-Bu Tan announced during the company’s first-quarter earnings call on Thursday that the 34-year-old Intel Capital will remain an internal entity, investing strategically in line with Intel’s broader corporate interests.
“We have decided not to spin out Intel Capital but rather to work closely with the team to monetize our existing portfolio,” Tan said, explaining the company’s renewed focus will be on select investments that align closely with its strategy. He emphasized the dual goals of strengthening Intel’s balance sheet and starting the deleveraging process within the year.
This decision marks a significant pivot from Intel’s previous plans. As recently as January, the company had revealed intentions for Intel Capital to become a standalone fund. At the time, Intel had described the move as a logical next step given the venture arm’s steady track record and notable investment exits, even against challenging market conditions.
Mark Rostick, a senior managing director at Intel Capital, had confirmed earlier this year that discussions about spinning out the venture arm had frequently occurred in the past but had only become more concrete in 2024 under previous CEO Pat Gelsinger. Initially, Intel aimed to make Intel Capital fully independent in the third quarter of this year while maintaining company ties as an investment partner.
However, Intel’s latest announcement indicates these plans will not materialize. Intel Capital will now retain its traditional role as an internal investing entity while becoming more selective and strategic, aimed at driving Intel’s corporate objectives forward.
