Intel is to spin off its venture arm into a separate entity under a new name.

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(Bloomberg) — Intel Corp., the chipmaker struggling to revive its business and finances at one point, plans to spin off its venture capital arm into a separate fund under a new name.

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The chip maker will remain an “anchor investor in the new company,” he said on Tuesday. Currently, the division known as Intel Capital has more than 5 billion dollars in assets.

Intel’s venture arm is one of the best-known corporate investment vehicles in Silicon Valley history and has done more than $20 billion in business over the past 30 years. Historically, the corporation has focused on technology it believes will help drive the personal computer and server industries, where it still gets most of its sales. Intel Capital Investments ASML Holding NV, Red Hat Inc. and include VMware Inc.

The move announced on Tuesday is designed to give the unit greater independence and freedom to raise capital from other sources.

“The separate 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 Group will transition to the new company, and business activities will continue as normal during the transition.”

Intel is losing market share and reeling from the rapidly changing chip industry, which is being bought by Nvidia Corp. The company’s decline has forced it to reduce work and other expenses to save money. The problem contributed to the ouster of CEO Pat Gelsinger late last year. The company is currently looking for his replacement.

Intel is taking other steps to narrow its focus and free up capital. That includes seeking investors for the Altera unit, according to people familiar with the matter. The business, which makes programmable chips, was acquired in 2015 for about $17 billion.

Another Intel acquisition, self-driving technology company Mobileye Global Inc., had an initial public offering in 2022. Although Intel owns the majority of the business, mobile is seen as a source of cash for the chip maker.

(Updates with other attempts to raise money in the last paragraph.)