Intel has signed a 'major collaboration agreement' with UK firm Imagination Technologies .

The deal, Imagination said, extends the licensing and deployment of graphics and video IP cores "in certain segments".

Intel has invested £5.3 million into Imagination, representing six million shares of its capital and giving Intel a 2.9 per cent stake in the firm.

Imagination's chief executive Hossein Yassaie said that the companies will work together to put graphics and video capabilities into Intel microprocessors. We'll just have to wait to see how far this deal extends. Anna Lagerkvist