On Wednesday, Intel announced the creation of a non-publicly traded entity with support from asset manager DigitalBridge and other investors.
The new firm, Articul8, will focus on the research and development (R&D) of enterprise artificial intelligence (AI) technology. It will have an independent board of directors with Intel as a major shareholder.
Articul8 will be an outgrowth of the US chipmaker’s generative AI (GenAI) work with the Boston Consulting Group (BCG). The project developed a system that combines open-source and internally developed technology to read text and images.
Intel modified the supercomputer-powered AI system to solve privacy and security concerns surrounding BCG’s data centers. Leveraging the technology, Articul8 will offer corporate clients a full-stack, vertically optimized GenAI software platform.
Moreover, the platform will combine deep AI with high-performance computing (HPC) to unlock value from an enterprise’s proprietary data. However, analysts cautioned that potential customers may be reluctant to share their data with the new AI deployment company.
Arun Subramaniyan, Intel’s former Vice President of Cloud and AI Strategy and Execution, will serve as Articul8’s chief executive. Subramaniyan said he would prioritize their solutions’ scalability, ease of deployment, security, and affordability.
In addition, Subramaniyan revealed that they have already tested Articul8 products with multiple clients in the past two years. He stressed that their production-ready solutions are perfect for deployments with rapid time to market.
Intel Ramps Up Efforts to Obtain Outside Capital
In recent years, Intel has ramped up calls for external funding for existing and new business units. Industry experts see it as the chipmaker’s strategy to accelerate GenAI advancements and position itself as the technology’s global leader.
Intel has also spun out business units at an increasing pace in the past decade. In 2022, it moved to list Mobileye (MBLY), a car AI chipmaker it acquired in 2017, on the Nasdaq.
DigitalBridge (DBRG) is a publicly traded global investment firm dedicated to digital infrastructure and data centers. It has an estimated market capitalization of $2.91 billion and assets under management (AUM) of over $75.00 billion.
