Intel’s interim co-chief executive, David Zinsner, said spinning off its venture arm was a “win-win scenario as it provides the fund with access to new sources of capital to expand its franchise while allowing both companies to continue benefiting from a productive long-term strategic partnership”.

Intel the chips maker that has fallen behind rivals AMD and Nvidia is separating its venture capital arm into a stand-alone fund. Intel is unusual because it both designs chips and manufactures them.

The chip maker said it will remain an investor in Intel Capital, founded in 1991 with over $5 billion in assets under management.