Intel Reverses Course, Keeps Intel Capital In-House
Intel has decided against spinning off its venture capital arm, Intel Capital. This reverses the announcement made earlier this year to establish Intel Capital as an independent entity.
During Intel's Q1 2025 earnings call, CEO Lip-Bu Tan stated that Intel Capital will remain within the company. The focus will shift towards monetizing the existing portfolio and making selective new investments.
We have made the decision not to spin off Intel Capital, but to work with the team to monetize our existing portfolio, while being more selective on new investments that support the strategy we need to get our balance sheet healthy and start the process of deleveraging this year.
This marks a significant change from the January announcement detailing Intel Capital's planned independence. Previous discussions indicated the spin-off aimed to attract outside investors and leverage Intel Capital's strong track record.
The initial plan, reportedly supported by former CEO Pat Gelsinger, was for Intel Capital to become independent by Q3 2025, with Intel remaining an investment partner. This plan is now cancelled.
The new strategy prioritizes investments that align with Intel's core business and financial goals. This includes improving the balance sheet and reducing debt.
