Intel spins out AI robotics company RealSense with $50 million raise

In a strategic move reflecting the growing emphasis on automation, Intel has announced the formation of a new entity focused on artificial intelligence robotics and biometric technology, named RealSense. This initiative was unveiled on Friday and is accompanied by a significant $50 million Series A funding round, which has drawn investment from notable sources including the MediaTek Innovation Fund and Intel Capital, Intel’s venture arm that is also being separated from its core business. RealSense specializes in developing tools and technologies for robotics automation, and the newly acquired funds are earmarked for the expansion of product lines to meet increasing global demand. Nadav Orbach, who currently serves as Intel’s vice president and general manager for incubation and disruptive innovation, will take the helm as CEO of RealSense. In an interview with CNBC, Orbach emphasized the urgency for advancements in physical AI, noting, "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." The robotics market is witnessing a surge in investments as companies worldwide explore the vast potential of AI applications. According to Morgan Stanley, the market for humanoid robots could soar to $5 trillion by 2050, with major tech players like Tesla and Amazon making substantial commitments in this area. Additionally, Nvidia's CEO Jensen Huang has identified robotics as a pivotal growth opportunity for the company, following AI trends. Salesforce's CEO, Marc Benioff, recently remarked that AI is currently managing between 30% and 50% of the company's operations. Intel has faced a challenging period, marked by significant stock declines and a series of cost-cutting measures, including the departure of CEO Pat Gelsinger and workforce reductions. Earlier this year, the company announced plans to divest a majority of its stake in its chip subsidiary Altera. RealSense, which was previously known as Intel Perceptual Computing, was established over a decade ago with a focus on 3D vision technology, launching its first product in 2015. The company employs approximately 130 individuals across the United States, Israel, and China, supplying technologies to autonomous robot manufacturers like Eyesynth and Unitree Robotics. Orbach indicated that RealSense aims to enhance the safety and usability of robotics technologies, ensuring they are accessible and effective for its customers. Intel will retain a minority interest in this newly formed venture, signaling its ongoing commitment to the robotics sector.