Intel said it plans to move its corporate venture arm, Intel Capital, into a standalone fund, with Intel as an “anchor investor.”

In one press release on Tuesday, Intel said the move “(enables) greater autonomy” and “the flexibility to attract outside capital.” Intel expects Intel Capital to begin operating independently in the second half of 2025, when it will be rebranded.

The existing Intel Capital team will transition to the new fund, and business operations will continue as normal throughout the transition, Intel said.

“The separation of Intel Capital is a win-win scenario because it gives the fund access to new sources of capital to expand its franchise while allowing both companies to continue to enjoy a productive long- term strategic partnership,” David Zinsner, Intel’s co. -chief executive officer and chief financial officer, said in a statement. “This move supports our broader strategy to maximize the value of our assets while driving greater focus and efficiency across the business.”

Intel founded Intel Capital in 1991 under former Intel Executive Vice President Les Vadasz. The original mission of Intel Capital is to support the development of the Intel ecosystem through equity investments in strategic companies.

Intel’s rivals AMD and Nvidia are pursuing their own venture funding. Nvidia was particularly aggressive in its investments last year pouring about $1 billion in AI companies.

Today, Intel Capital has over $5 billion in assets under management. Over the past 30 years or so, it has invested in more than 1,800 companies in sectors such as silicon, 5G, devices, and cloud. In total, Intel Capital has deployed more than $20 billion in cash in markets including North America, Western Europe, Israel, and Asia Pacific.

Since 2014, Intel Capital has increased its investments in AI startups. Some of the more notable portfolio companies are AI chip startups SambaNovaIsraeli AI company AI21 Goodhumanoid robotics company PICTUREand AI developer platform Any size.

Intel’s decision to remove Intel Capital comes after the company’s board of directors forced out CEO Pat Gelsinger last month and appointed in his place Zinsner and Michelle Johnston Holthaus as interim co-CEOs. Holthaus is also the CEO of Intel Products, a newly created division that encompasses the chipmaker focused on the consumer org as well as its data center, AI, network, and edge businesses.

Intel has had a rough go of it lately. Last October, the company posted a $16.6 billion quarterly loss — the largest in its 56-year history. and 2024 will be Intel’s worst year yet since it was published in 1971.

In an effort to streamline operations and reduce costs, Intel has taken steps to spin out another of its business divisions, the Intel Foundry, which is responsible for chip manufacturing, in September. Intel is in the midst of a $10 billion cost-cutting plan, which includes laying off 15,000 staff. And the company is said to be considering selling its driverless arm Mobileye and its business and cloud networking division.

Suitors including Qualcomm have IS reported approached Intel about a possible acquisition.