Compaq Forms New Alliance With Intel

Intel Corp. and Compaq Corp. on Thursday unveiled an alliance to develop technology linking together business computers, posing a fresh threat to rival makers of networking equipment.

The No. 1 maker of computer chips and the biggest maker of PCs plan to cooperate on licensing, design and product development, with the goal of cheapening networking equipment and improving how it works. Compaq’s ties with retailers could help sell products resulting from the alliance.

The move could further push the Santa Clara, Calif., chip giant beyond its core business of making microprocessors.