Intel shares closed higher following a new plan to spin off its AI-focused foundry business into an independent subsidiary capable of raising outside funding.
Intel is separating its AI-focused foundry business into an independent subsidiary — a strategic move that could help revitalize the company. Over the past year, Intel has reported multibillion-dollar losses, and its stock price has dropped by nearly 45%.
In a Sept. 16 memo to employees, Intel CEO Patrick Gelsinger said Intel Foundry will become an independent subsidiary with its own board of directors and the ability to raise outside capital.
Intel is among the world’s largest producers of semiconductors and computer processing units. The move to spin off Intel Foundry marks an escalation in competition with its rival Nvidia, which has profited massively from creating chips and cards that cater to the specific needs of AI systems.
