The Wall Street Jornal reports that Intel will later today a laptop-computer chip that combines an Intel processor and an AMD graphics unit.
The chip is designed for laptops that are thin and lightweight but powerful enough to run high-end videogames, according to the report.
Intel has been dominant in the PC chip market, but AMD recently launched chips that represent the first real competition for Intel.
AMD also recently revamped its graphics-chip designs, looking to take share away from Nvidia, which has nearly 80% of the market for stand-alone graphics chips by revenue.
An AMD spokesman said that laptops built on Intel's new chip won't compete directly with those based on AMD's coming Ryzen Mobile. The Intel chip will appeal to serious gamers, he said.
Intel has not provided any comment.