Intel is establishing a new independent company dedicated to its artificial intelligence software endeavors, with support from digital-focused asset manager DigitalBridge Group and other investors. While the deal’s value and Intel’s stake percentage in the venture remain undisclosed, company executives emphasize that the newly formed entity, named Articul8 AI (pronounced “Articulate AI”), will operate independently with its own board of directors, and Intel will maintain a role as a shareholder.
The genesis of Articul8 AI lies in Intel’s collaboration with Boston Consulting Group (BCG) on corporate AI technology. Utilizing its supercomputers, Intel developed a generative AI system capable of analyzing text and images, incorporating a blend of open-source and internally developed technology. To address BCG’s privacy and security concerns, Intel adapted this system to run within BCG’s data centers.
Arun Subramaniyan, previously the vice president and general manager in Intel’s data center and AI group, will serve as the CEO of Articul8. He highlighted the common reservations among potential customers regarding relinquishing their data to large cloud computing companies for AI work. Additionally, concerns about escalating costs when numerous employees engage with the systems prompted the development of Articul8.
The initiative aligns with Intel’s strategy of seeking external capital for various business units, following the spin-out of car chip firm Mobileye Global. Intel also plans an eventual initial public offering for its programmable chip unit. Articul8’s investor roster includes DigitalBridge, Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group, further emphasizing the industry support for this venture.
