Intel and China’s Letv announced a partnership on Sunday to collaborate on ecosystem resources for developing an end-to-end global video cloud ecosystem. Letv, a Chinese rival to YouTube, is among the biggest online video providers in China, says a report from eWeek.

Intel Teams Up With China's Letv On Video Cloud Ecosystem

Duo to collaborate on many fronts

Intel and Letv will work on developing and commercializing new and progressive visual technologies like virtual reality, 360-degree panorama and augmented reality. Letv will make use of Intel architecture to optimize offline and real-time video transcoding solutions. Use of Intel chips will help double the transcoding speed. The firms will work on coded and decoding techniques, architecture, chips and other components, targeting Letv Cloud’s next-gen CDN-SEN (adaptive network) video. Together, they will develop a video technology lab to push the new cloud-based video technology.

Apart from enhancing real-time video processing speeds, the duo will also create a new video transcoding system that not only betters Letv Cloud’s offline but also doubles the real-time video transcoding competences. The transcoding system will be based on Intel’s original IA architecture. Intel and Letv Cloud will use their IPs in the Internet of things and in multi-screen viewership to come up with integrated hardware and software solutions to provide high-performance video.

Intel betting big on China

In recent times, Intel has raised its investment in China. Last month, the chip maker announced plans to invest up to $5.5 billion in its Chinese plant to upgrade it for developing memory chips. The factory is expected to start making chips by the second half of next year, the chip maker said last week. In 2014, Intel acquired a 20% ownership stake in two mobile chip makers which are owned by state-backed Tsinghua Holdings.

Letv Group, founded in 2004, deals in many businesses such as video production and distribution, smart gadgets, Internet TV, large-screen applications, Internet-linked electric cars, eco-agriculture, and e-commerce. It recently came up with three smartphones, and it also own a film production company called LeVision Pictures. Letv is based in Beijing but recently inaugurated an office in Redwood City, Calif. The group, which has around 5,000 full-time employees, is making efforts to expand in countries like the U.S. and India.

In premarket trading today, Intel shares were down 0.15% at $33.81. Year to date, the stock is down by almost 8% while in the last one month, it is up by almost 13%.