Intel Builds New GenAI Software Company for Enterprise Focus

Intel Builds New GenAI Software Company for Enterprise Focus

Intel’s AI software firm has strong backing from DigitalBridge

Intel has spun out a new platform company, Articul8 AI, with the backing of DigitalBridge, a Florida-based asset manager and investor. The new entity builds off a proof-of-concept from an Intel collaboration with Boston Consulting Group (BCG) early last May. The generative AI system created by Intel using its hardware and a combination of open source and internally sourced software can read text and images and runs inside BCG’s data centers to address BCG’s security requirements.

Initially, BCG was the sole go-to-market supplier and customer of the system. However, Intel has worked over the last few months to scale the platform to companies in financial services, aerospace, semiconductor, telecommunications and other industries that require high levels of security and specialized domain knowledge.

Articul8’s gen AI software product was built from the ground up to address the needs of enterprises. The platform is optimized for speed of deployment, scalability, security and sustainability, including costs. The platform delivers AI capabilities that keep customer data, training and inference within the enterprise security perimeter. The platform also provides customers the choice of cloud, on prem or hybrid deployment.

Arun Subramaniyan, formerly a VP and GM at Intel’s data center and AI group, will become the spinout’s CEO. The rest of the Articul8 team will also comprise ex-Intel employees, and Intel will retain an undisclosed stake in the firm.

Beyond Intel and DigitalBridge, Articul8 investors include Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures and Zain Group.

Intel plans to leverage Articul8’s enterprise gen AI software for internal use cases as well as offer it to end customers as part of a joint go-to-market partnership. This collaboration will drive consumption of Intel compute offerings, and Intel will continue to leverage Articul8’s AI domain knowledge and expertise as Intel continues to grow its footprint in the generative AI market.

Intel’s move to launch Articul8 is its latest endeavor to seek outside capital for business units. The chipmaker spun out car chip firm Mobileye, sold off its memory chip division and intends an eventual initial public offering of its programmable chip unit. The spinouts are part of Intel’s strategy to raise capital for CEO Pat Gelsinger’s comeback plan, which involves building out new chip factories in the U.S. and Europe, as well as introducing new advanced chip manufacturing nodes within the next four years. Articul8 fits into Gelsinger’s plans to deliver new software products and services, including GenAI-powered products, that rival those from competitors like Nvidia and AMD and make Intel hardware more attractive for a range of applications.

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    Frequently Asked Questions

    What are the core products and services offered by Intel’s new GenAI software company?

    Intel’s new GenAI software company aims to provide enterprise-focused artificial intelligence solutions. The company’s core products and services include AI software development tools, AI model optimization and deployment platforms, and AI consulting services.

    How does Intel’s GenAI venture aim to transform enterprise AI applications?

    Intel’s GenAI venture aims to transform enterprise AI applications by providing a suite of AI tools and services that can help companies accelerate their AI adoption and integration. The company’s AI development tools and platforms are designed to simplify and streamline the AI development process, while its consulting services can help companies optimize their AI models for maximum performance and efficiency.

    What strategic advantages does Intel hope to gain by spinning out its GenAI software company?

    By spinning out its GenAI software company, Intel hopes to gain several strategic advantages. These include increased agility and flexibility in the rapidly evolving AI market, the ability to focus exclusively on AI-related products and services, and the opportunity to attract new customers and partners in the enterprise AI space.

    Can you detail the investment and funding structure for the newly formed GenAI company?

    Details on the investment and funding structure for the newly formed GenAI company have not been publicly disclosed at this time. Beyond DigitalBridge, which is publicly traded and a major investor in data centers, other Articul8 investors include Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures and Zain Group.

    How will existing Intel customers be affected by the creation of the GenAI spinoff?

    Existing Intel customers are not expected to be significantly affected by the creation of the GenAI spinoff. The new company will continue to work closely with Intel to ensure seamless integration with existing Intel products and services.

    What are the implications of Intel’s GenAI company on the broader AI and technology market?

    Intel’s GenAI company is expected to have significant implications for the broader AI and technology market. By providing enterprise-focused AI solutions, the company has the potential to accelerate the adoption and integration of AI across a wide range of industries. Additionally, the creation of a dedicated AI-focused company could spur increased investment and innovation in the AI space, driving further advancements and breakthroughs in the field.

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    Created by Martin Hamilton