Intel Reverses Decision: Intel Capital Stays In-House

Intel Reverses Course, Keeps Intel Capital In-House

Semiconductor giant Intel has reversed its decision to spin off its venture capital arm, Intel Capital.

During Intel's Q1 2025 earnings call, CEO Lip-Bu Tan announced that Intel Capital will remain an internal division. The 34-year-old venture arm will now focus its investments on supporting Intel's core strategy and improving its balance sheet.

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 shift from Intel's previously announced plans.

From Spin-off to Staying Put

In January 2025, Intel announced that Intel Capital would become an independent entity. Following the announcement, Intel Capital VP and senior managing director Mark Rostick told TechCrunch that the firm had considered spinning out multiple times, citing their strong track record and successful exits.

We thought our track record merited attention from outside investors. We had done really well, even while, you know, a lot of the venture industry hasn’t been able to realize exits, we’d had some success doing that, so we felt like we could position ourselves as a bit of an outlier there.

Discussions about the spin-off intensified last year, reportedly with support from former Intel CEO Pat Gelsinger. The original plan was for Intel Capital to become independent by Q3 2025, with Intel remaining an investment partner.

This plan has now been abandoned, with Intel Capital remaining within the company.