Intel spins off enterprise AI company Articul8 with outside funding

Intel has set up a new company, Articul8 AI, to sell enterprise generative AI software it developed. 

Articul8 AI will be led by Arun Subramaniyan, formerly vice president and general manager in Intel’s Data Center and AI Group. The new company’s investors include global investment firm DigitalBridge Ventures.

“With its deep AI and HPC [High Performance Computing] domain knowledge and enterprise-grade GenAI deployments, Articul8 is well positioned to deliver tangible business outcomes for Intel and our broader ecosystem of customers and partners,” Intel CEO Pat Gelsinger said in a news release. 

The new entity will use an Intel generative AI system that can read text and images using a combination of open-source and in-house technology. The system is already being used by enterprises including Scripps, Uptycs and Invest India. 

One of the first organizations to use Articul8 was Boston Consulting Group (BCG), which runs it in its data centers for enterprise customers requiring enhanced security. “Our collaboration began nearly two years ago while the venture was still in the incubation stage at Intel. Since then, we have deployed Articul8 products for multiple clients seeking production-ready platforms with rapid time to market,” Rich Lesser, global chair of BCG, said in the news release.

Articul8 AI will target organizations in telecommunications, semiconductors, government, aerospace, life sciences and cybersecurity verticals, among others.   Enterprises will be able to deploy the Articul8 platform on premises, in the cloud, or in a hybrid deployment. 

Setting up Articul8 as a separate company will help Intel stimulate demand for its AI hardware, including Xeon scalable processors and Gaudi accelerators — but the Articul8 platform also supports a range of hybrid infrastructure alternatives, including Nvidia’s. 

The value of the deal was not revealed, and it is not clear whether Intel has a majority stake in the new venture. Besides DigitalBridge, other investors in the new entity include Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, Zain Group and GS Futures. 

Intel has been trying to grow its profile in the fast-expanding AI ecosystem as its rivals, including Nvidia and AMD, continue to gain momentum. Nvidia’s hardware was used in the development of ChatGPT, a widely adopted and popular AI tool, giving it a crucial head start over its competitors. AMD too has been building up the software component of its AI stack. It recently announced its intention to acquire Nod.ai, an open-source machine-learning and AI software provider.