Intel Corporation (NASDAQ:INTC) is spinning off its artificial intelligence (AI) software business into a new private company called Articul8 AI, the chipmaker announced Wednesday.
The new venture has received backing from asset manager DigitalBridge Group and other investors, the company noted.
Intel did not specify the value of the move nor did it confirm whether it would hold a majority stake in Articul8, although the company noted that Intel will hold some stake. Executives also said Articul8 will have an independent board of directors.
Articul8 will look to carry forward work on corporate AI that Intel initially did with Boston Consulting Group (BCG), the company said.
Essentially, Intel previously developed generative AI software to run inside BCG’s data centers to help with privacy and security issues, according to reports.
Articul8 will be headed by Arun Subramaniyan, the former vice president and general manager of Intel’s data center and AI group.
Shares of Intel declined 1.6% Wednesday morning to $47.02.