Intel

is spinning out its artificial intelligence (AI) robotics and biometric venture into a new company named RealSense. This announcement came after the US-based chipmaker cut 500 jobs, which affected 15% to 20% of its factory workers. As more companies invest in automation tools, RealSense also secured a $50 million Series A funding round. This funding includes contributions from

MediaTek Innovation Fund

and Intel Capital, the chipmaker’s venture arm, which is also being spun out from Intel. RealSense, which develops tools and technology for

robotics automation

, stated its intention to use the new funding to develop additional product lines and address increasing global demand. Nadav Orbach

, currently Intel’s vice president and general manager for incubation and disruptive innovation, will assume the role of CEO at RealSense.

In an interview with CNBC, Orbach highlighted the technology’s broader adoption and more practical applications, saying, “the timing is now for physical AI.”

“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,” Orbach added.RealSense now operates independently with about 130 employees, focusing on developing safe and user-friendly tools. Intel retains a minority stake, the report added.Global companies are increasing investments in robotics as AI adoption grows. Morgan Stanley estimates the humanoid robot market could reach $5 trillion by 2050, with tech giants like Tesla and Amazon leading the charge. Nvidia’s CEO, Jensen Huang, views robotics as its next major opportunity after AI, while Salesforce claims AI handles up to half its workload. Meanwhile, Intel, facing setbacks in the AI race, has taken cost-cutting measures, including CEO and job cuts. It recently sold most of its stake in Altera and spun off RealSense, its 3D vision unit, which supports

autonomous robotics

firms like Eyesynth.