Intel has announced plans to sell 51% of its stake in Altera, striking a deal with Silver Lake, a leading tech investment firm.

Altera is an Intel company that specializes in “programmable solutions that are easy-to-use and deploy in applications from the cloud to the edge, offering limitless AI possibilities.” The company has a long history in Silicon Valley, with it unveiling its first programmable device in 1984.

Intel and Silver Lake have agreed on a $8.75 billion deal for 51% of Altera, with Intel retaining 49% ownership. As part of the deal, Raghib Hussain will take over as CEO, replacing Sandra Rivera, effective May 5, 2025.

“Today’s announcement reflects our commitment to sharpening our focus, lowering our expense structure and strengthening our balance sheet,” said Lip-Bu Tan, chief executive officer of Intel. “Altera continues to make progress repositioning its product portfolio to participate in the fastest growing and most profitable segments of the FPGA market. We are grateful for Sandra’s strong leadership and lasting impact throughout her 25-year Intel career and wish her continued success as she begins a new chapter. Raghib is a superb executive we selected to lead the business forward based on his vast industry experience and proven track record of success. We look forward to partnering with Silver Lake upon closing of the transaction, as their industry expertise will help to accelerate Altera’s efforts and unlock additional economic value for Intel.”

“This investment represents a once-in-a-generation opportunity to invest in a scale leader in advanced semiconductors. Together with Raghib, we will be focused on strengthening Altera’s technology leadership position and investing in emerging AI-driven markets such as edge computing and robotics,” said Kenneth Hao, chairman and managing partner of Silver Lake. “We look forward to working closely with Intel as a strategic partner who will continue to provide U.S.-based foundry services and complementary engagement with customers.”

“I am excited to lead Altera in its next chapter, and this milestone with Silver Lake furthers Altera’s journey to be the world’s No. 1 FPGA solutions provider,” said Hussain. “Backed by Silver Lake’s strong track record and now with clarity of focus as an independent company, Altera is well-positioned to build on its momentum and deliver breakthrough FPGA-based solutions that are shaping the future of compute driven by AI. I am grateful for the impact Sandra has made and the team she has built as we begin Altera’s next phase of growth.”

Selling a majority stake in Altera fits with Tan’s statements about his plans for Intel’s turnaround. While Tan appears to be intent on keeping Intel in one piece—as opposed to the board floating the idea of selling off the company’s foundry business—Tan has stated he intends to sell off non-core parts of the company in an effort to refocus it.