(Reuters) – Japanese technology investment firm SoftBank has abandoned plans to collaborate with Intel to make artificial intelligence chips to compete with Nvidia, the Financial Times reported on Thursday.
The deal fell through because U.S. chipmakers had difficulty meeting SoftBank’s demands, according to reports, citing people familiar with the matter.
SoftBank reportedly blamed Intel for the breakdown in negotiations, citing its inability to meet volume and speed demands, adding that SoftBank is now focused on talks with Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker.
The talks reportedly broke down ahead of Intel’s deep cost-cutting plans, which include cutting thousands of jobs, set to begin in early August.
Intel and SoftBank did not immediately respond to Reuters requests for comment.
(Reporting by Shivani Tanna in Bengaluru; Editing by Rashmi Aich)
