New CEO reverses high-profile decision in bid to stabilize balance sheet and rebuild trust.
Intel’s new CEO Lip-Bu Tan has reversed a major strategic decision by halting the planned spinoff of Intel Capital, the company’s influential venture arm, opting instead to monetize existing holdings and take a more focused investment approach.The about-face comes just months after Intel announced that Intel Capital would become a standalone fund in the second half of 2025—part of a broader campaign to slim down the chipmaker’s bloated portfolio and restore profitability after years of underperformance. That plan, developed under interim leadership following the resignation of CEO Pat Gelsinger, now appears shelved as Tan charts a new, more disciplined course.
Intel. (Photo: Reuters)
“In addition, 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 our strategy,” Tan said in Thursday’s earnings call. “We need to get our balance sheet healthy and start the process of deleveraging this year.”
The decision is emblematic of the pragmatic tone Tan has struck since taking the reins in March. While Gelsinger’s tenure was defined by bold bets—chief among them Intel Foundry and a sprawling network of global fabs—Tan has been clear that his focus is on operational efficiency, engineering culture, and financial discipline.
That includes reining in Intel Capital, which has invested more than $20 billion across 1,800 companies since its founding in 1991 and plays a significant role in global venture markets. While the fund will remain intact, Intel now appears intent on harvesting value from its portfolio rather than doubling down on expansive venture activity.
Intel cancels Intel Capital spinoff as Lip-Bu Tan shifts to financial discipline | CTech
New CEO reverses high-profile decision in bid to stabilize balance sheet and rebuild trust.
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