Intel Forms Independent AI Company Articul8 AI with Support from DigitalBridge and Investors

Intel has revealed plans to establish a new independent company, Articul8 AI, focused on advancing its artificial intelligence (AI) software initiatives. The chipmaker is joined by prominent investor DigitalBridge Group, along with other contributors, in supporting the venture. While specific financial details remain undisclosed, Intel confirmed that Articul8 AI would maintain an independent board of directors, with Intel retaining a stake in the new entity.

Articul8 AI emerges as a natural progression of Intel’s collaboration with Boston Consulting Group (BCG) on corporate AI technology. The collaboration initially involved Intel utilizing its supercomputing capabilities to develop a generative AI system capable of interpreting text and images. The system, incorporating a mix of open-source and proprietary technology, was subsequently adapted for deployment within BCG’s data centers. This strategic move addressed privacy and security concerns related to AI data processing.

Formation of Articul8 AI:

The new entity, Articul8 AI, signifies Intel’s commitment to expanding its presence in the AI landscape. Notably, the company refrains from taking Articul8 AI public, emphasizing its nature as a non-publicly traded venture. The formation of Articul8 AI aligns with Intel’s broader strategy of seeking external funding for specific business units. The company had previously spun out Mobileye Global and has plans for an eventual initial public offering for its programmable chip unit.

Generative AI Advancements:

Articul8 AI’s foundation rests on addressing critical challenges in generative AI. While creating proof of concepts is often considered straightforward, the transition to production while ensuring safety and cost sustainability remains a significant hurdle. The company aims to bridge this gap by leveraging Intel’s technological expertise and responding to concerns raised by potential clients regarding data privacy and the escalating costs associated with widespread AI system usage.

Leadership and Vision:

Arun Subramaniyan, formerly Vice President and General Manager in Intel’s data center and AI group, is slated to assume the role of Chief Executive Officer at Articul8. In an interview, Subramaniyan emphasized the company’s dedication to addressing key issues in generative AI, specifically focusing on enabling the seamless and secure transition from proof of concept to practical implementation.

Investor Support:

DigitalBridge Group, a digital-focused asset manager, stands as a primary supporter of Articul8 AI. As a major investor in data centers, DigitalBridge’s involvement adds significant credibility and strategic support to the venture. Other contributors to Articul8 AI include Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group, reflecting a diverse and robust backing from investors with expertise in various sectors.

Intel’s External Capital Strategy:

Intel’s decision to seek external funding for business units aligns with its evolving corporate strategy. By creating independent entities and attracting investments from industry players, Intel aims to foster innovation and expedite the growth of specific technology segments.

The establishment of Articul8 AI marks a significant milestone for Intel as it ventures further into the realm of artificial intelligence. With robust support from DigitalBridge and a diverse group of investors, Articul8 AI is poised to play a pivotal role in addressing challenges within the generative AI landscape. Intel’s strategic moves to seek external capital underscore its commitment to driving innovation and unlocking new opportunities in emerging technology sectors. As the AI landscape evolves, Articul8 AI stands as a testament to Intel’s proactive approach in navigating the dynamic and competitive technological terrain.