In a significant development, Intel revealed on Wednesday its strategic move to establish Articul8 AI, an independent company dedicated to advancing its artificial intelligence (AI) software initiatives. The announcement comes with substantial financial support from DigitalBridge Group, a digital-focused asset manager, alongside investments from a diverse group of backers. The emergence of Articul8 AI marks Intel’s pursuit of external capital for its business units, signaling a concerted effort to propel its AI technology into a new realm of innovation.

Intel executives, while tight-lipped on the deal’s exact value, affirmed that Articul8 AI would operate as an independent entity with its own board of directors. The chipmaker’s commitment as a shareholder in the venture further underscores its dedication to the advancement of AI technology. The genesis of Articul8 AI can be traced back to Intel’s collaboration with Boston Consulting Group (BCG), culminating in the development of a sophisticated generative AI system that addresses critical concerns surrounding data privacy and security.

The birth of Articul8 AI

Intel’s foray into the AI landscape takes a definitive form with the creation of Articul8 AI, a novel entity poised to shape the future of AI software. Underpinned by collaborative efforts with Boston Consulting Group (BCG), Intel leveraged its computational prowess to craft a generative AI system. This system, capable of comprehending both text and images, seamlessly integrates open-source and internally developed technology. The innovative solution was then adapted to function within BCG’s data centers, strategically addressing the pressing issues of privacy and security associated with AI work.

Arun Subramaniyan, the former vice president and general manager in Intel’s data center and AI group, assumes the role of chief executive at Articul8. In an interview, he shed light on the challenges that spurred the creation of Articul8 AI. Many potential customers, Subramaniyan noted, expressed reservations about entrusting their data to large cloud computing companies for AI processes. Concerns regarding escalating costs, particularly with the widespread adoption of AI systems by thousands of employees, also emerged as a prominent barrier.

Arun Subramaniyan emphasized the prevailing challenge in generative AI, underscoring the ease of constructing a proof of concept while acknowledging the crucial gap in transitioning to production. He expressed the imperative need to ensure safety and cost sustainability, shedding light on the primary focus of Articul8 AI’s mission.

Investment backing and future prospects

Articul8 AI’s journey is marked not only by Intel’s commitment but also by a diverse group of investors. Beyond the financial support from DigitalBridge, a publicly traded entity and a significant investor in data centers, Articul8 attracts investments from Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group. This eclectic group of backers underscores the broad appeal and potential impact that Articul8 AI envisions within the AI software domain.

Intel’s move to seek external capital for its business units reflects a broader strategy, as seen in the spin-off of car chip firm Mobileye Global and plans for an eventual initial public offering of its programmable chip unit. The establishment of Articul8 AI positions Intel at the forefront of AI innovation, addressing concerns raised by potential customers and paving the way for a more secure, efficient, and cost-effective adoption of generative AI technology.

Articul8 AI paves the future for Intel in AI software

As Articul8 AI takes its first steps into the AI software arena, the industry watches with anticipation. Intel’s collaboration with a diverse array of investors and the establishment of a dedicated entity signal a commitment to overcoming the challenges hindering the seamless integration of generative AI into practical, cost-effective applications. The question that looms is whether Articul8 AI will bridge the gap between AI proof of concept and production, ushering in a new era of innovation and efficiency in the evolving landscape of artificial intelligence.