Intel is establishing a new independent company dedicated to its artificial intelligence software endeavors, with support from DigitalBridge Group, a digital-focused asset manager, and other investors. Intel has not disclosed the deal’s value or whether it will retain a majority stake in the new venture. The upcoming entity, named Articul8 AI (pronounced “Articulate AI”), is an evolution of Intel’s collaborative work on corporate AI technology with Boston Consulting Group (BCG).
Leveraging its supercomputers, Intel developed a generative AI system capable of analyzing text and images using a mix 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, formerly a vice president and general manager in Intel’s data center and AI group, is set to become the CEO of Articul8. He highlighted concerns from potential customers about data privacy, security, and escalating costs when utilizing large cloud computing companies for AI work.
Articul8, which will not be publicly traded, aims to fill a crucial gap in generative AI by focusing on the challenges of transitioning from proof of concept to production in a secure and cost-effective manner. Intel’s decision to create Articul8 aligns with its strategy to attract external capital for various business units. In the past, Intel spun out Mobileye Global, a car chip firm, and plans an eventual initial public offering for its programmable chip unit. Investors in Articul8 include DigitalBridge, Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group.