Intel (INTC - Get Report) is looking to gain an even larger footprint, agreeing to buy startup Barefoot Networks in a bid to keep up with Broadcom (AVGO - Get Report) in cloud computing technology offerings.
In a blog post published on Intel's newsroom website on Tuesday, the chipmaking giant said it was buying Barefoot Networks to diversify its chip-offerings to also encompass Ethernet-based communication.
Intel's forte is chips used in portable and wireless devices. Partnering with Barefoot allows it to focus on chips that juice computing computer required to parse and analyze big chunks of data on computer-networking systems and within big-data centers.
Terms of the deal weren't disclosed.
We are very excited to share this news and we look forward to being a part of the Intel Family! https://t.co/6X5X6oLRZh— Barefoot Networks (@barefootnetwork) June 11, 2019
Tech giants including Alphabet (GOOGL - Get Report) , Alibaba Group Holding (BABA - Get Report) and Tencent Holdings, as well as Goldman Sachs (GS - Get Report) have backed Barefoot Networks, which was co-founded in 2013 by Stanford University Professor Nick McKeown.
Shares of Intel were down 0.3% on Tuesday to $46.67.What's Next for AMD, Intel and Nvidia?