Intel has signed a technology and sponsorship deal with BMW that will see the German car maker introduce Intel technology in its business, and the two work together on a range of future products including car devices, phones and music players.

Intel will also sponsor BMW's Sauber Formula One team - pitting it directly against rival AMD, which sponsors Ferrari.

BMW will deploy Intel technology in its data centres, use Centrino in its notebooks and increase the use of Intel-based PDAs across the group. Intel will also standardise BMW's IT infrastructure and provide software support. "We're also expecting to reduce our IT costs through this partnership," a BMW spokesman said.

Intel refused to disclose how much it had paid, but the Formula One sponsorship alone can be expected to have cost at least $10 million, and anywhere up to $70 million.