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Intel retains Network and Edge Group in-house following spin-off exploration
Wednesday, December 3, 2025 at 09:24 PM
Intel has officially confirmed it will retain its Network and Edge Group as an internal division, abandoning previous considerations to spin off the networking and communications business.
Context
Intel has confirmed it will retain its Network and Edge Group (NEX) in-house, reversing a July 2025 plan to spin off the division or seek strategic investors. This decision effectively ends negotiations with Ericsson, which had previously considered a minority stake. By keeping NEX internal, Intel aims to unify its silicon and software roadmap to better compete in edge AI and data center markets, strengthening its position as the 18A process node enters high-volume production in early 2026.
The reversal is driven by a stabilized balance sheet following massive capital injections throughout 2025. Intel secured $8.9 billion from the U.S. government, a $5 billion investment from Nvidia, and $2 billion from SoftBank. These funds eliminated the immediate need to offload NEX, which previously accounted for approximately $5.8 billion in annual revenue. For investors, this move signals renewed confidence in Intel’s integrated business model and its strategic pivot toward "AI at the Edge" as a core growth engine.
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