Intel Slumps on Spinout Company RealSense
Intel (NASDAQ:INTC) is spinning out its artificial intelligence robotics and biometric venture as more companies bet big on automation tools.
The new company, known as RealSense, was announced Friday and comes alongside a $50-million Series A funding round that includes MediaTek Innovation Fund and Intel Capital, the chipmaker’s venture arm that it is also spinning out.
RealSense, which makes the tools and technology for robotics automation, said it plans to use the funding to develop new product lines and meet growing demand worldwide. Nadav Orbach, Intel’s current vice president and general manager for incubation and disruptive innovation, will serve as CEO.
“The timing is now for physical AI,” as the technology gains more use cases and traction, Orbach told reporters.
“We want to develop new product lines. We see the demand and we see the need, and with where it’s at right now, the right thing for us was to raise external funds.”
Companies across the globe have ramped up investment in the burgeoning robotics space as AI use cases expand.”
Morgan Stanley (NYSE:MS) expects the market for humanoid robots to hit $5 trillion by 2050 as tech companies, including Tesla (NASDAQ: TSLA) and Amazon (NASDAQ:AMZN), bet big on the technology and automation.
Intel has undergone a series of cost-cutting plans after the worst year for its stock in decades.
INTC shares shed 57 cents, or 2.4%, to $23.26.
