Intel Corp has furthered its graphics interests once again, by taking a $14m stake in special effects company Discreet Logic Inc. Intel is also working with Discreet to develop new high-end special effects projects aorund its forthcoming 64-bit Merced chip. The move looks like a further blow to Silicon Graphics Inc, which has been the primary provider of hardware for Montreal, Quebec-based Discreet Logic’s high-end graphics turnkey systems, such as Inferno, Flame and Fire, used for the special effects on such films as Forrest Gump and Titanic. But the move won’t come as a surprise to Silicon Graphics. Over the past year Discreet has acquired three visual software companies in order to start buying its way into the Windows NT software arena: Lightscape Technologies Inc (CI No 3,304), Denim Software Inc and D-Vision Systems Inc. Discreet plans to develop new real-time compositing and image processing visual effects software for the Merced chip, aimed at multi-processor workstations that use the part, which is due to enter production some time in 1999. The company says it looks forward to entering a new and larger market segment through the shift to Intel-based workstations. Intel says the move is a continuation of its visual computing initiative launched in April of last year (CI No 3,130).