Intel (INTC) and chip designer Arm (ARM) said Friday the companies finalized an agreement to collaborate on an initiative providing financial, intellectual property (IP), and manufacturing support to startups.

The collaboration, called the Emerging Business Initiative, was first announced at last month's Intel Foundry conference and builds on a partnership established last April, in a move the companies suggested could help propel innovation in artificial intelligence (AI).

"Startups play a crucial role in bringing the great promise of transformations like AI to reality. The Emerging Business Initiative provides a path for new companies to leverage leading-edge Arm-based SoCs and Intel Foundry’s global manufacturing capabilities to make their ideas real,” Intel Senior Vice President and General Manager of Foundry Services Stuart Pann said in a release.

Arm and Intel have both benefitted from booming demand for AI, and as competition in the space heats up, they along with other key players such as Nvidia (NVDA) have invested significantly in startups as part of their efforts to strengthen their positions as new technology develops rapidly.

Intel shares finished 0.4% higher at $42.57 Friday, while Arm shares gained 0.4% to $134.15. Shares of Intel have surged about 46% over the last 12 months, and Arm shares have more than doubled in value since the company went public in September.