Intel Unleashes RealSense—New AI, Robotics Player Scores Huge Investment

Intel Corp. INTC announced on Friday that it has separated its AI, robotics and biometric business into RealSense, an independent company.

The Details: Intel also announced that RealSense has secured $50 million in Series A funding, according to CNBC.

The investment round includes backing from the MediaTek Innovation Fund and Intel Capital, the chipmaker's own venture arm, which is also being spun out.

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RealSense focuses on developing robotic automation technologies and plans to use the new funding to create innovative products and meet increasing global demand.

Nadav Orbach, who previously led innovation at Intel, will become RealSense's CEO.

He told CNBC that the timing is ideal for "physical AI," highlighting the growing opportunities and applications for robotics.

Orbach said the company intends to launch new product lines in response to strong market demand.

The robotics sector is seeing a surge in investment as AI applications expand. Morgan Stanley estimates the market for humanoid robots could reach $5 trillion by 2050.

Major tech companies, including Tesla, Inc. TSLA and Amazon.com, Inc. AMZN are heavily investing in automation and Nvidia Corp. NVDA CEO Jensen Huang has identified robotics as the company's next major opportunity after AI.

Why It Matters: Intel has faced a difficult period, including its worst stock performance in decades, leading to cost-cutting measures such as layoffs and the dismissal of its CEO.

The company has also started selling off parts of its business, including a majority stake in its chip subsidiary Altera.

RealSense was originally founded more than 10 years ago as Intel Perceptual Computing, with a focus on 3D vision technology. Its first product was launched in 2015.

RealSense employs about 130 people across the U.S., Israel, and China, and supplies technology to autonomous robot makers like Eyesynth and Unitree Robotics.

Orbach emphasized that RealSense is committed to improving industry safety tools and delivering user-friendly technology. Intel will keep a minority stake in the new company.

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