Intel has announced the formation of a new independent company, Articul8 AI, dedicated to advancing its artificial intelligence (AI) software efforts. The venture is backed by digital-focused asset manager DigitalBridge Group and several other investors, marking Intel's latest strategic move to seek outside capital for its business units.
While specific financial details of the deal remain undisclosed, Intel executives have confirmed that the new entity, Articul8 AI, will feature an independent board of directors, ensuring autonomy in its operations. The chipmaker will retain a significant shareholder position, although the extent of its majority stake has not been disclosed.
Articul8 AI, pronounced "Articulate AI," is an outgrowth of Intel's collaboration with Boston Consulting Group (BCG) on corporate AI technology. Utilizing one of its supercomputers, Intel developed a groundbreaking generative AI system capable of processing text and images through a combination of open-source and proprietary technology. To address privacy and security concerns, the system was adapted to run within BCG's data centers.
Arun Subramaniyan, formerly vice president and general manager in Intel's data center and AI group, will assume the role of chief executive at Articul8. In an interview,
Subramaniyan emphasized the company's focus on addressing the challenges of transitioning generative AI from proof of concept to production in a safe and cost-effective manner.
The key motivation behind Articul8's creation lies in addressing common reservations among potential customers who are hesitant to entrust their data to large cloud computing companies for AI work. Concerns over privacy, security, and potential runaway costs have driven the demand for a solution that offers both efficacy and sustainability.
Intel's move to establish Articul8 follows its trend of seeking external capital for its business units, including the spin-out of car chip firm Mobileye Global and plans for an eventual initial public offering of its programmable chip unit. Among the investors supporting Articul8 are DigitalBridge Group, Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group.
Articul8 AI emerges as a promising player in the generative AI landscape, aiming to bridge the gap between proof of concept and production in a manner that ensures safety, security, and cost-effectiveness for businesses venturing into AI technologies.
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