Intel Buying Equity Stake in Inktomi

Intel Corp. is investing about $2 million to buy an equity stake in Internet start-up Inktomi Corp. under a strategic alliance, the companies said Wednesday. Inktomi, based in San Mateo, is known mostly for developing the HotBot Internet search engine software, but it is also developing technologies to improve speed and access in corporate networks and the Internet. As part of this deal, the two companies are collaborating on engineering and developing Inktomi’s Traffic Server network cache software product to run on Intel’s architecture. Intel will receive non-exclusive distribution rights to the product, which aims to reduce congestion on networks. Intel’s stock fell 69 cents to $94.56 on Nasdaq.