Intel transfers its Atom chip technology to a startup associated with its CEO.

      Intel is discreetly transferring one of its valuable assets to a small, under-the-radar startup, which is managed by a long-time business partner of Intel's own CEO.

      According to a source and documents reviewed by Reuters, the chip manufacturer is providing RosaicLabs with access to its Atom processor technology, a foundational element of its central processing units. This is a rare decision for Intel, which seldom licenses parts of its x86 architecture.

      Rosaic is headed by Amarjit Gill, an experienced chip executive and venture investor. He and Intel’s CEO, Lip-Bu Tan, have a long history of co-investing, having helped establish the founding team at Rivos, a chip startup that Meta acquired last year after outbidding Intel, while Tan served as chairman. Both have also supported Nuvia, which was later sold to Qualcomm.

      What Intel is actually transferring is significant. Intel plans to provide Rosaic with the register-transfer level (RTL) code for Atom, which serves as a low-level guide for how the chip operates. This transfer offers the customer substantial insight into Intel’s intellectual property, according to a seasoned chip executive, enabling them to create their own custom designs. Atom is designed for low power consumption and heat generation, making it suitable for mobile and edge devices.

      Rosaic is largely unknown, having filed its first incorporation papers in Delaware in May and lacking a website or LinkedIn profile, which is common for secretive chip startups. Its founding team includes individuals from Rivos, and an updated filing from July indicates it can raise a $10 million seed round.

      The situation raises some concerns. Intel is currently undergoing a significant transformation under Tan, who has implemented aggressive cost-cutting measures and sought to open its foundry to external clients. Licensing its intellectual property is part of that strategy.

      However, granting rare access to a company led by a former investment partner of the CEO and composed of alumni from the startup that once outbid Intel raises obvious questions. Reuters has previously reported on agreements that have increased Tan’s personal wealth. Intel declined to comment, and Gill did not respond.

      There is a strategic rationale behind the decision as well. Intel infrequently shares its x86 architecture, and allowing a nimble startup access to Atom could help penetrate markets that it cannot pursue solo. Competitors are already rushing to create custom silicon for the AI age. Whether the benefits outweigh the governance concerns is what Intel’s board and investors will need to consider.