IBM and Intel are set to announce a $1 billion merger, including a $500 million investment from IBM, the Wall Street Journal reported Wednesday.
The deal will allow the tech companies to collaborate on projects that will be focused on artificial intelligence, machine learning and other topics, according to the Journal.
IBM will make the investment in a deal announced Tuesday.
IBM is also the lead investor in Google.
The company plans to invest $300 million in the new venture, according the Journal report.
The merger will allow IBM to further develop its AI and machine learning products, as well as support its existing business.
The news comes just days after Microsoft’s CEO Satya Nadella said the company will acquire Google in an attempt to boost its AI capabilities.
The two companies have been working together on a wide range of AI-related projects, including projects to improve AI for medical diagnoses.
Google has been investing in Google X, a research and development lab that builds AI software for the company’s research efforts.
The Wall Street Times reported earlier this year that Google is considering building a new AI lab and developing a similar AI system for Google X.