Intel's RealSense Division Acquired for $600 Million After Employee-Led Rescue

Intel's RealSense 3D vision division, once slated for closure, has been acquired by U.S. company Cognex for over $600 million. This marks a significant turnaround for the division, which was rescued two years ago by its employees and a group of private investors, including Intel's own venture capital arm, Intel Capital.

Facing potential shutdown under former Intel CEO Pat Gelsinger's strategy to divest non-core assets, RealSense, led by Israeli Nadav Orbach, was sold off. In July 2025, the division secured $50 million in funding from investors including Intel Capital and Taiwanese chip giant MediaTek. Since then, RealSense has become a major player in robotics, partnering with Nvidia and capturing over half the market share for humanoid and industrial robots.

The acquisition by Cognex, a leader in machine vision technology, includes $500 million in cash for shareholders and investors, representing a 500% return for those who invested just 14 months prior. Additionally, Cognex will provide a $106 million package of stock, cash, and options for RealSense employees, with at least 80 Israeli employees expected to receive over one million shekels each. RealSense, which employed 180 people, 140 in Israel, has grown from a quarterly revenue of $7-8 million to an expected $80-90 million by year-end, becoming profitable.

Nadav Orbach described the process of separating RealSense from Intel as complex, requiring approvals from four different CEOs due to management changes. He highlighted Intel's support, stating, "Intel remained an investor, but we bought control from them 14 months ago - at the perfect timing for the robotics field's surge." RealSense's success is attributed to its development of a leading 3D perception layer, partnering with Nvidia to integrate its solution across various robotics applications, from industrial robots to autonomous vehicles.

Cognex, valued at $10 billion, sought to expand into the robotics market and identified RealSense as a growth engine. The acquisition will see RealSense operate as a separate division, with Cognex planning to establish a development center in Israel, bucking a trend of tech companies closing Israeli facilities. Orbach noted Cognex's positive view of Israel, stating, "They were very excited about it." Despite challenges like the strong shekel, Cognex focused on RealSense's value, growth rate, and momentum.