Intel is putting its money where its mouth is by setting up a $300 million development fund to finance ultrabook development.

The funding is channeled through Intel Capital and the chipmaker plans to use it over the next three to four years to fund new technologies that will eventually end up in ultrabooks. Intel Capital President Arvind Sodhani believes ultrabooks will revolutionize computing and morph notebooks into must-have devices.

Intel hopes that ultrabooks will make up about 40 percent of its worldwide notebook shipments and all major vendors are working on ultrabook products, scheduled for launch in late Q3 and Q4. However, high production costs are causing some issues for vendors who are struggling to meet Intel’s $999 price target.