Intel's new AI software firm, Articul8, secures backing from DigitalBridge

In a significant development on Wednesday, 3 January 2024, Intel announced the creation of a new independent company dedicated to its artificial intelligence software endeavors. This initiative has garnered support from digital-focused asset manager DigitalBridge Group and several other investors.

Intel executives refrained from disclosing the financial details of the deal and whether they would maintain a majority stake in the newly formed venture. However, they confirmed that the independent entity, named Articul8 AI, pronounced as “Articulate AI,” would comprise its board of directors, with Intel retaining a role as a shareholder.

The genesis of Articul8 AI can be traced back to Intel’s collaboration with Boston Consulting Group (BCG) on corporate AI technology. Leveraging one of its supercomputers, Intel developed a generative AI system capable of processing text and images through a blend of open-source and proprietary technology. Subsequently, this system was adapted to operate within BCG’s data centers, addressing privacy and security concerns.

Arun Subramaniyan, formerly the vice president and general manager of Intel’s data center and AI group, is set to assume the position of chief executive at Articul8. He highlighted the common reservations among potential customers regarding the surrender of their data to large cloud computing firms for AI operations. Additionally, concerns were raised about potential cost escalations if numerous employees engaged with these systems.

Subramaniyan mentioned in an interview that they have been earnestly working to tackle the most significant gap in generative AI. According to him, building a proof of concept is straightforward, but the challenge lies in transitioning projects into production safely and in a cost-sustainable manner.

Intel’s move to establish Articul8 follows its strategy of seeking external capital for various business units. The company previously spun out car chip firm Mobileye Global and envisions an eventual initial public offering for its programmable chip unit.

Among the investors in Articul8, in addition to DigitalBridge, are entities like Fin Capita. Notably, Articul8 AI will not be publicly traded, signifying a strategic focus on fostering advancements in AI technology.