Intel shares jump 6% after plan to spin off AI chip-making arm

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 spinning off its AI-focused foundry business into an independent subsidiary—a move that could turn things around for the firm. The firm has posted multibillion-dollar losses and seen its stock price fall nearly 45% in the last year. 

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.

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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 spinning off its AI-focused foundry business into an independent subsidiary—a move that could turn things around for the firm. The firm has posted multibillion-dollar losses and seen its stock price fall nearly 45% in the last year. 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. Read more