On January 3, Intel, a leading chip manufacturer, announced its latest venture into artificial intelligence by establishing a standalone business focused on generative AI. This new entity, Articul8 AI, is being created in partnership with DigitalBridge Group, a company specializing in digital real estate management.
The financial details of this collaboration, such as the deal’s valuation and Intel’s continued majority ownership in the startup, have not been disclosed publicly by Intel. Despite this, Intel will retain its stake in the company and may engage with an independent board of directors.
Intel’s Recent Business Venture in Artificial Intelligence
Arun Subramaniyan, a former Intel vice president, is expected to assume the role of CEO at Articul8. Subramaniyan, who previously led Intel’s data center and AI division, emphasized the challenges in transitioning from conceptual AI to practical, cost-effective implementation. He stated to Reuters, “Building a proof of concept is straightforward, but the key lies in transitioning to production in a sustainable and cost-effective manner.”
In a bid to compete with Nvidia in the AI chip market, Intel, based in California, is not only focusing on hardware but also developing AI software to rival industry players like OpenAI, Google, Stability AI, and Anthropic. Intel’s CEO, Pat Gelsinger, highlighted Articul8’s potential to deliver significant business value to Intel and its customers through its expertise in AI and high-performance computing.
The establishment of Articul8 stemmed from collaborative research on venture AI between Intel and the Boston Consulting Group (BCG). Rich Lesser, BCG’s global CEO, mentioned that the partnership, initiated nearly two years ago, has already resulted in the deployment of Articul8 solutions for various clients seeking efficient, market-ready platforms.
Through the utilization of Intel’s supercomputing capabilities and a blend of open-source and proprietary technologies, a conceptual AI framework capable of processing text and images was developed. This solution, tailored to sectors such as finance, aerospace, semiconductors, and telecommunications, addresses privacy and security concerns by operating within BCG’s secure data centers.
Intel’s Consolidated Approach to AI Research
While Intel has been exploring AI opportunities across diverse sectors, its core strength lies in producing high-performance chips and AI-specific startups. The launch of Articul8 signifies Intel’s commitment to advancing AI technologies and solutions.
Marc Ganzi, CEO of DigitalBridge, highlighted the significance of integrating conceptual AI capabilities into modern workflows, emphasizing its pivotal role in digital transformation across industries.
Articul8 has secured funding from various entities, including Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap, GS Futures, and Zain Group, in addition to DigitalBridge’s substantial investment in data centers.
Intel’s decision to establish Articul8 aligns with its strategy of seeking external investment for specific business models. Following the spin-off of its automotive chip division Mobileye Global, Intel plans to pursue an initial public offering (IPO) for its programmable chip unit.
Despite Intel’s ambitious foray into AI, Articul8 may encounter challenges related to societal impact, ethical considerations, transparency, accountability, and evolving standards of responsible AI development.
