Intel has been considering the sale of Altera, a programmable microchip manufacturer that was acquired in 2015 for $17 billion. The company has begun the process of spinning off Altera as a separate entity and has already received interest from several private equity firms, including Silver Lake, Bain Capital, and Francisco Partners. The sale is expected to generate several billion dollars in revenue for Intel, which has been under pressure to bolster its finances amidst rising competition and regulatory challenges.
According to sources, Intel plans to sell Altera at a valuation of around $17 billion, the same price it was acquired at in 2015. The company has been under pressure to offload non-core assets and cut costs, and the sale of Altera is seen as a necessary step in that process.
Despite the sale, Intel has stated its intention to maintain Altera as a public company, with a plan to go public within the next few years. The company's CEO, Pat Gelsinger, has stated that the sale is not a sign of weakness, but rather a strategic decision to focus on the company's core businesses.
The sale of Altera is expected to provide Intel with a much-needed influx of cash, which it will use to offset the costs of its ambitious plans to become a leader in artificial intelligence. The company has been investing heavily in AI research and development, and the sale of Altera will help it to stay ahead of the competition.