Intel spins out AI robotics company RealSense with $50 million Series A funding

As more companies bet big on automation tools, Intel is spinning out its artificial intelligence robotics and biometric venture. The new company, RealSense, was announced Friday and comes alongside a $50 million Series A funding round that includes MediaTek Innovation Fund and Intel Capital.

Intel Capital is the chipmaker’s venture arm that is also spinning out.

RealSense, which makes the tools and technology for robotics automation, plans to use the funding to develop new product lines and meet growing demand worldwide. Formerly known as Intel Perceptual Computing, the company was created more than a decade ago to investigate 3D vision technology and launched its first product in 2015. Nadav Orbach, Intel’s current vice president and general manager for incubation and disruptive innovation, will serve as its CEO.

“The timing is now for physical AI, as the technology gains more use cases and traction,” Orbach said. “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.”

With the rise in AI cases, companies across the globe have ramped up investment in the burgeoning robotics space. Morgan Stanley expects the market for humanoid robots to hit $5 trillion by 2050 as tech companies, including Tesla and Amazon, 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. The company axed CEO Pat Gelsinger and cut jobs last year as it struggled to keep up with AI competition. In April, the company said it would sell a majority of its stake in chip subsidiary Altera.