(Bloomberg) -- Intel Corp., the once-dominant chipmaker struggling to revive its business and finances, plans to turn its venture capital arm into a separate fund with a new name.
The chipmaker will continue to be an “anchor investor in the new company,” according to a statement Tuesday. The division, currently known as Intel Capital, has more than $5 billion in assets.
Intel’s venture arm is one of the best-known corporate investment vehicles in the history of Silicon Valley and has put more than $20 billion into businesses over the last 30 years. Historically, it has concentrated on technology that it felt would help advance the personal computer and server industries, where the corporation still gets most of its sales. Intel Capital’s investments have included ASML Holding NV, Red Hat Inc. and VMware Inc.
The move announced Tuesday is designed to give the unit greater independence and allow it the freedom to raise capital from other sources.
“Standalone operations are expected to begin in the second half of 2025, at which time Intel Capital will operate under a new name,” the Santa Clara, California-based company said in a statement. “The existing Intel Capital team will move to the new company, and business operations will continue as normal throughout the transition.”
Intel is reeling from a loss of market share and a fast-changing chip industry where Nvidia Corp. now reigns. The company’s decline has forced it to cut jobs and other expenses to preserve cash. The plight also contributed to the ouster of Chief Executive Officer Pat Gelsinger late last year. The company is currently looking for his replacement.
Intel is also taking other actions to narrow its focus and free up capital. That includes seeking investors for its Altera unit, according to people familiar with the matter. The business, which makes programmable chips, was acquired for about $17 billion in 2015.
Another Intel acquisition, the self-driving tech firm Mobileye Global Inc., had an initial public offering in 2022. Though Intel retained ownership of most of the business, Mobileye is seen as a potential source of cash for the chipmaker.
(Updates with other attempts to raise cash in final paragraph.)