Intel Establishes Independent AI Software Firm with DigitalBridge Backing

Intel Stock

On Wednesday, Intel (NASDAQ:INTC) announced forming a new independent company centered around its artificial intelligence software endeavors. The venture has garnered support from digital-focused asset manager DigitalBridge Group (NYSE:DBRG) and various other investors. While Intel executives did not disclose the deal’s value or whether they would retain a majority stake, they affirmed that the new entity, Articul8 AI (pronounced “Articulate AI”), would have an autonomous board of directors, with Intel maintaining a stake.

Articul8 AI is an evolution of Intel’s collaborative efforts on corporate AI technology with Boston Consulting Group (BCG). Leveraging its supercomputers, Intel developed a generative AI system capable of analyzing text and images through a blend of open-source and in-house technology. This system was adapted to operate within BCG’s data centers, addressing privacy and security concerns.

Arun Subramaniyan, former vice president and general manager in Intel’s data center and AI group, will assume the role of CEO at Articul8. He highlighted concerns from potential customers about entrusting data to large cloud computing firms for AI work, along with worries about escalating costs as more employees adopt such systems.

Subramaniyan stated in an interview, “We’ve been really trying to address the biggest gap in generative AI today, which is that building a proof of concept is easy, but getting things into production and doing it safely and in a cost-sustainable way is really what is missing.”

Intel’s decision to establish Articul8 aligns with its strategy to secure external funding for business units. The company previously spun out car chip firm Mobileye Global (NASDAQ:MBLY) and intends to conduct an eventual initial public offering for its programmable chip unit.

DigitalBridge, a publicly traded entity and a significant investor in data centers, joins other investors in Articul8, including Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group.

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