Intel (INTC) - Get Intel Corporation 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 Broadcom Inc. 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.
Tech giants including Alphabet (GOOGL) - Get Alphabet Inc. Report , Alibaba Group Holding (BABA) - Get Alibaba Group Holding Limited American Depositary Shares each representing eight Report and Tencent Holdings, as well as Goldman Sachs (GS) - Get Goldman Sachs Group Inc. (The) 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.