diff --git a/kb_pipeline/pipeline.py b/kb_pipeline/pipeline.py
index 016a780..439b330 100644
--- a/kb_pipeline/pipeline.py
+++ b/kb_pipeline/pipeline.py
@@ -59,8 +59,8 @@ class Pipeline:
         """
         self.processors: Dict[str, BaseProcessor] = {p.STEP_NAME: p for p in processors}
         self.config = config or PipelineConfig()
-        self.output_dir = output_dir or Path.cwd()
         self.settings = get_settings()
+        self.output_dir = output_dir or Path(self.settings.intermediate_path)
 
         # Validate processors - each processor's STEP_NAME must be in config.steps
         for step_name in self.processors: