SoftBank scraps AI chips tie-up plan with Intel, FT reports

(Reuters) – Japanese technology investor SoftBank (TYO:) dropped plans of producing an artificial intelligence chip with Intel (NASDAQ:) to compete with Nvidia (NASDAQ:), the Financial Times reported on Thursday.

The partnership did not materialize after the U.S. chipmaker struggled to meet SoftBank’s requirements, according to the report, citing people familiar with the matter.

SoftBank has blamed Intel for the collapse of the talks, claiming Intel was incapable of meeting its demands for volume and speed, the report said, adding that SoftBank is now focusing on discussions with Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker.

The talks failed in advance of Intel’s drastic cost-cutting plans, which included thousands of lay-offs in early August, the report added.

Intel and SoftBank did not immediately respond to Reuters’ requests for comment.