Aug 15 (Reuters) - Japanese technology investor SoftBank

dropped plans of producing an artificial intelligence

chip with Intel ( INTC ) to compete with Nvidia ( NVDA ), 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 ( INTC ) for the collapse of the talks,

claiming Intel ( INTC ) 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 ( TSM )

, the world's largest contract chipmaker.

The talks failed in advance of Intel's ( INTC ) drastic cost-cutting

plans, which included thousands of lay-offs in early August, the

report added.

Intel ( INTC ) and SoftBank did not immediately respond to Reuters'

requests for comment.