``The possibilities are endless,'' Anand Chandrasekher, Intel's ultra mobility group general manager, said in a statement.

The companies said they would collaborate on improving so-called ``open-source'' software for mobile devices. Open-source software is code that's distributed freely on the Internet so programmers can modify and improve it on their own.

Kai Oistamo, Nokia's executive vice president of devices, said the deal represents a significant commitment between the two companies to work together on the future of mobile computing.

``We will explore new ideas in designs, materials and displays that will go far beyond devices and services on the market today,'' Oistamo said.