Intel has announced the establishment of a new standalone entity focused on artificial intelligence software. The venture will receive support from DigitalBridge Group (DBRG.N) and additional investors, Reuters reported.

While specific details regarding the deal’s value and Intel’s stake in the new company were not disclosed, Intel emphasized that the venture would operate independently with its own board of directors. The chipmaker clarified that it would maintain a shareholder position in the new entity.

Utilizing one of its powerful supercomputers, Intel has successfully engineered a generative Artificial Intelligence system. This system showcases the capability to analyze text and images through a combination of internally developed technologies and open-source solutions.

Intel then modified this system to run in BCG’s own data centers to help address BCG’s privacy and security concerns.

Arun Subramaniyan, previously the 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 noted that numerous prospective clients share apprehensions about entrusting their data to major cloud computing companies for AI tasks.

Furthermore, Subramaniyan highlighted the concerns of potential customers regarding the potential escalation of costs if a substantial number of their employees begin utilizing the systems.

“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.

Intel’s establishment of Articul8 represents its most recent effort to secure external funding for its business divisions.

Previously, the chipmaker spun off the automotive chip firm Mobileye Global (MBLY.O) and has intentions for an eventual initial public offering of its programmable chip unit.

Apart from DigitalBridge, a prominent investor in data centers, Articul8 has garnered support from other investors such as Fin Capital, Mindset Ventures, Communitas Capital, GiantLeap Capital, GS Futures, and Zain Group.

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