Intel is collaborating with Boca Raton, Florida-based property manager and investor DigitalBridge to establish a new software company aimed at enhancing its presence in the AI-powered enterprise software market.
The newly formed entity, Articul8 AI, stems from a proof-of-concept resulting from a collaboration between Intel and Boston Consulting Group (BSG) in early May. Intel developed a versatile AI system capable of processing text and images by leveraging its hardware, open-source software, and domestically sourced software. This system operated within BCG’s data centers to meet stringent security standards set by BSG.
Originally incubated within Intel over a span of approximately two decades, the system was fine-tuned to cater specifically to BSG’s requirements, as reported by CRN.
While BCG initially served as the sole supplier and customer for the system, Intel has been actively broadening its reach in recent months. The program now encompasses industries such as financial services, aviation, semiconductor, telecommunications, and others with a focus on high security standards and technical expertise, according to an Intel spokesperson. Although optimized for Intel hardware, the system also accommodates alternative hardware options.
Articul8’s director highlighted to TechCrunch via email that the company’s AI software product was meticulously crafted to address business needs with a focus on rapid implementation, scalability, security, and cost-effectiveness. The platform’s AI capabilities ensure that consumer data, education, and inferences remain secure within the enterprise’s perimeter. Customers are offered the flexibility to choose between cloud, on-premise, or hybrid implementations through the platform.
Arun Subramaniyan, a former vice president and general manager at Intel’s infrastructure and AI division, is poised to assume the role of CEO at the spin-out. The Articul8 team comprises former Intel employees, with Intel retaining an undisclosed stake in the company.
In addition to Intel and DigitalBridge, prominent data center owners and publicly traded entities, Articul8 has garnered interest from investors such as Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group.
Intel’s strategic alignment with Articul8 underscores its commitment to leveraging the company’s enterprise-grade AI software for internal applications and joint market initiatives. This collaboration is expected to enhance Intel’s AI offerings while enabling Indust to tap into Articul8’s specialized AI expertise.
The establishment of Articul8 represents Intel’s latest move to secure external funding for its product portfolio. The chipmaker has divested its memory device division, spun off the automotive chip company Mobileye, and plans to initiate an IPO for its customizable chip unit in the near future.
These strategic spin-outs form part of Intel’s broader strategy to fund CEO Pat Gelsinger’s ambitious return plan, which includes expanding chip manufacturing facilities in the US and Europe and introducing cutting-edge chip manufacturing nodes over the next four years. Articul8 aligns with Gelsinger’s vision to deliver innovative programs, including AI-powered solutions, to compete effectively with industry rivals like Nvidia and AMD, thereby bolstering the appeal of Intel hardware across diverse applications.
