On Wednesday, Intel (INTC.O.) announced the formation of a new independent firm to support its artificial intelligence software initiatives, with backing from digital-focused asset management firm DigitalBridge Group (DBRG.N) and other investors.
Intel officials did not disclose the deal’s value or whether the chipmaker would retain majority ownership in the new venture other than to say the company would have an independent board of directors and that Intel would remain a stakeholder.
The new firm, Articul8 AI (pronounced “Articulate AI”), will not be publicly listed and is an offshoot of Intel’s first work on corporate AI technology with Boston Consulting Group (BCG).
Intel has created a generative AI system on one of its supercomputers that can interpret text and images using open-source and internally developed technology. Intel subsequently adapted the system to work within BCG’s data centers, assisting BCG with its privacy and security issues.
Arun Subramaniyan, who will become CEO of Articul8 after serving as vice president and general manager in Intel’s data center and AI department, said many other potential clients had similar concerns about handing over their data to colossal cloud computing companies for AI work.
He also stated that potential clients were concerned about the cost explosion if thousands of their employees began to use the systems. “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,” Subramaniyan said in a phone interview.
Intel’s decision to establish Articul8 is the company’s latest attempt to raise outside funding for its business groups.
The chipmaker broke apart the automobile chip business Mobileye Global (MBLY.O.) and intends to go public with its programmable chip segment.
Other Articul8 investors include Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, Zain Group, and DigitalBridge, all publicly traded and significant data center investors.