Intel to spin off RealSense as Israel-based startup

In August 2021, even before major rounds of layoffs, Intel announced that it would shut down its RealSense 3D depth camera division based on its acquisition of several Israeli startups, most of whose employees were in Israel. Some employees were laid off but the activity was not stopped but kept on the back burner for several years.

Robot Report reported last Friday that Intel had sponsored RealSense, which has now been spun off as an independent startup, with the aim of achieving its stakes in the future.

It is estimated that the new RealSense company will have 100 employees, most of them in Israel. Shares in the company will be held by Intel Capital, Intel’s venture capital fund, a subsidiary of the chip giant. RealSense’s CEO is Nadav Orbach, who is currently vice president and general manager of innovative incubation and innovation at Intel and founder of the company’s computer vision business, while RealSense founder Mark Yahiro, who is also vice president and general manager of Intel, will be responsible for business development.

The RealSense division builds on Intel’s acquisitions of Israeli companies Omek Interactive and Invision Biometrics, more than a decade ago when deep vision and 3D cameras were a hot trend in Silicon Valley. Those were the years when the tech giants competed in developing reality glasses, and Apple also acquired Israel’s PrimeSense, which currently serves as the basis for facial recognition on iPhones.

RealSense started out developing deep vision and cognitive computing, and in 2021 it was asked to focus on the robotics industry and temporarily stopped developing new facial recognition cameras, but only in recent years due to market demand. RealSense will continue to develop depth cameras for autonomous and non-autonomous robots, facial verification cameras, and unique cameras in the field of physical therapy. The company intends to develop additional systems in the field of robotics, such as stereo vision, biometrics, and artificial intelligence.

Intel separated the Israeli company Mobileye after its acquisition, and even helped it relist on the New York Stock Exchange in October 2022, with a value of $16 billion. The chip giant has a history of “regretting” acquiring companies and trying to sell them. For example, in 2006 it sold the Israeli company DSPC to Marvell Technologies for $600 million, having previously acquired it for $1.6 billion.

Not all of Intel’s acquisitions in Israel have had such good fortune. Towards the end of 2024, as part of a reorganization, Intel was forced to shut down Granulate, the Israeli cloud technology company it acquired in 2022 for $650 million, after it was unable to find a buyer. However, the RealSense spin-off is proof that Intel can take a company inactive in its core areas off its hands without shutting it down, allowing it to seize its opportunities in the open market.

Intel confirmed the story to Globes and said: “After ten years of development and nurturing within Intel, it is time to unleash the full potential of Intel RealSense technology for computer vision and artificial intelligence. The technology will be launched independently as a separate unit of the company as part of the Intel Capital Investment Portfolio (ICAP).” During the first half of 2025. It is important for us to stress that we are committed to a smooth transition for all of our customers, and we will continue to provide them with the full support they need throughout the process.”

Published by Globes, Israel Business News – en.globes.co.il – on January 12, 2025.

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