Intel Grants Rare Atom Access to Startup Run by CEO Tan’s Co-Investor

How Intel’s Atom IP Passed to the CEO’s Former Investment Partner

Intel is handing over the register‑transfer level (RTL) code for its Atom processor to RosaicLabs, a startup that barely exists in public view. The RTL is the low‑level blueprint that describes exactly how the chip works — an extremely rare transfer for Intel, which almost never licenses its x86 architecture. According to documents reviewed by Reuters, the chipmaker aims to ship the sensitive design files to a tiny firm led by Amarjit Gill, a veteran chip executive and venture investor.

Gill is not a stranger to Intel’s new chief executive. He and Lip‑Bu Tan are longtime co‑investors. Together they helped build the founding team at chip startup Rivos, which Meta acquired last year after outbidding Intel, while Tan was Rivos’s chairman. Both men also backed Nuvia, later sold to Qualcomm. RosaicLabs itself filed its first incorporation papers in Delaware in May, with no website or LinkedIn page, and its amended filing shows it can raise a $10 million seed round. Its founding team includes ex‑Rivos engineers.

The transfer is part of Tan’s strategy to open Intel’s foundry to outside customers and monetize its intellectual property — but the personal connections make the optics awkward. Intel declined to comment, and Gill did not respond to requests. The board now faces the question of whether the strategic logic can justify a deal that invites obvious governance scrutiny.

The Governance Dilemma Inside Intel’s IP‑Licensing Pivot

Why Intel is sharing its crown‑jewel IP

Atom is built for low power and low heat, natural fits for mobile and edge devices. By granting RosaicLabs access to the RTL, Intel could seed a nimble partner to develop custom chips for markets it cannot pursue alone — generating licensing fees and potentially pulling new business into its foundry services. This fits squarely with Tan’s public push to turn Intel into a truly open manufacturing hub, much in the way TSMC works with fabless design houses.

The conflict‑of‑interest cloud

The ties between Tan and Gill are deep. As co‑investors in both Rivos and Nuvia, they shared financial interests that previously intersected with Intel’s corporate dealings. While Tan was chairman of Rivos, Meta’s acquisition outbid Intel, meaning Tan’s personal portfolio benefited from a deal that cost Intel a strategic asset. Now a new startup, staffed with Rivos alumni and run by Gill, is receiving some of Intel’s most guarded technology. Reuters previously reported on other deals that boosted Tan’s personal fortune. Without an independent review of the licensing terms, the arrangement naturally raises the spectre of self‑dealing, even if the strategic logic is sound.

What the board must weigh

For Intel’s directors, the test is whether the transaction was negotiated at arm’s length and whether its value to the company outweighs the reputational cost. Even an above‑board agreement can be tainted by the perception of cronyism — especially at a company that needs to rebuild investor trust while laying off thousands and cutting costs. If the board fails to demonstrate rigorous oversight, it risks shareholder lawsuits or SEC scrutiny over undisclosed related‑party transactions. The board’s response will be watched closely by governance activists and institutional investors alike.

What the Arrangement Means for Intel’s Board, Investors and the Chip Industry

For Intel’s board:

• Commission an independent review of the licensing terms to verify they reflect market rates and were not preferential treatment for Tan’s associate. Any resulting public findings would help cement the deal’s legitimacy.
• Seek disclosure in the next quarterly filing of any related‑party transaction triggers — American securities law requires that such arrangements be flagged if they involve officers and their affiliates.

For investors:

• Watch for Intel’s upcoming 10‑Q for explicit mention of the RosaicLabs deal; the absence of a related‑party note could signal the company’s legal team determined the relationship does not meet the threshold, but it would also draw attention to the framework’s limits.
• Query Intel’s investor relations about the process used to approve the licensing — how many directors were independent, and whether any external fairness opinion was sought.

For the chip industry:

• Rivals and fabless startups should note that Intel is now willing to open its deepest x86 IP to the right partner. A successful custom chip from RosaicLabs could accelerate demand for similar licensing packages, particularly for edge AI applications where low‑power x86 cores are attractive.