IBM, one of the largest technology companies in the world, has sold $1 billion of stock in its $300 million chip business to help finance a new $2.4 billion fund.
IBM will use the money to help support its research into semiconductor and chip-related technologies.
The chip company is also investing in new technology to support the business.
The fund, which will be led by Sequoia Capital, will be called IBM Global Research Fund and will be launched by the company in late 2018.
IBM has made big investments in the chip industry, including buying Intel for $13.6 billion and adding several billion in revenue through acquisitions.
But the chip company has faced criticism from some analysts for its investments in its own chip business.
Earlier this year, the company said that it will not continue to use its own chips for its personal computers or smartphones, instead using Intel’s chips for a new, cheaper chip.
IBM is already one of Silicon Valley’s largest technology corporations.
In a statement announcing the sale, the chipmaker said it would use the funds to fund research and development.
“We will continue to make strategic investments in technology and innovation, including to advance the commercialization of our semiconductor technology and support the growth of our chip business,” the statement said.