Intel launches Articul8 AI, an enterprise generative AI startup with backing from DigitalBridge

Intel has launched a new AI software company “to address the biggest gap in generative AI today.” In an announcement on Wednesday, Intel said it was forming a new independent company around its artificial intelligence software efforts with backing from digital-focused asset manager DigitalBridge Group and other investors, Reuters reported.

While the exact value of the deal remains undisclosed, Intel executives refrained from commenting on whether they would retain a majority stake in the emerging venture. However, they confirmed that the new company, named Articul8 AI (pronounced “Articulate AI”), would boast an independent board of directors, and Intel would continue to be a shareholder, Reuters reported.

The genesis of this endeavor stems from Intel’s collaborative efforts with Boston Consulting Group (BCG) in the realm of corporate AI technology. Leveraging its supercomputers, Intel developed a generative AI system capable of analyzing text and images through a blend of open-source and proprietary technology. This system was subsequently adapted to operate within BCG’s data centers, addressing privacy and security concerns.

“Articul8 was created with intellectual property (IP) and technology developed at Intel, and the two companies will remain strategically aligned on go-to-market opportunities and collaborate on driving GenAI adoption in the enterprise. Arun Subramaniyan, formerly vice president and general manager in Intel’s Data Center and AI Group, has assumed leadership of Articul8 as its CEO,” Intel said in a press release.

Arun Subramaniyan, formerly a vice president and general manager in Intel’s data center and AI group, is set to assume the role of chief executive at Articul8. He emphasized the common reservations expressed by potential customers regarding entrusting their data to large cloud computing companies for AI work, as well as concerns about escalating costs when deploying such systems across numerous employees.

In an interview, Subramaniyan highlighted the primary focus of Articul8—to bridge the gap in generative AI by facilitating the transition from proof of concept to production securely and cost-effectively. This move by Intel aligns with its broader strategy of seeking external capital for business units, following the spin-out of Mobileye Global and the planned IPO for its programmable chip unit.

“We’ve been really trying to address the biggest gap in generative AI today, which is that building a proof of concept is easy, but getting things into production and doing it safely and in a cost-sustainable way is really what is missing,” Subramaniyan said in an interview.

Articul8’s investor lineup includes DigitalBridge, Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group, with DigitalBridge being a notable publicly traded investor in data centers.

“Every global enterprise today is challenged to integrate GenAI capabilities into their workflows. Articul8 has built a scalable and easy-to-deploy GenAI software platform that is already enabling enterprises to unlock value from their proprietary data. We see GenAI as a pivotal force driving digital infrastructure, and we are pleased to collaborate with Intel to support Articul8’s growth,” said Marc Ganzi, DigitalBridge CEO.

“GenAI is at the forefront of our clients’ business strategy and needs. 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,” said Rich Lesser, global chair of BCG.