Hold the presses: Intel is U-turning on its decision to shelve its Network and Edge Group (NEX).

The embattled chip giant had announced in July that it was looking to potentially shelve or sell its networking unit. However, Bloomberg reports that Intel has instead changed its mind, opting to keep it in-house after a “thorough review of strategic options.”

“Keeping NEX in-house enables tighter integration between silicon, software, and systems, strengthening customer offerings across AI, data center, and edge,” the firm said in a statement.

Ericsson was among the interested parties in purchasing a potential stake in the NEX unit, but Intel has since ended talks. The Swedish vendor was exploring becoming a minority stakeholder in the business unit, with a considerable portion of the cloud RAN market – including Ericsson’s own infrastructure – relying on CPUs built on Intel’s x86 architecture.

What's next for NEX?

The U-turn will see Intel’s networking unit remain part of the firm.

That move comes after the firm began efforts to dismantle it by integrating networking elements into both its Client Computing Group (CCG) and Data Center and Artificial Intelligence group (DCAI). Its Edge business has already been shifted into the CCG unit.

After being parachuted in to save the beleaguered firm, CEO Lip-Bu Tan said Intel was focused on priority areas like the firm’s foundry business, a revised AI roadmap, and “clean and simple architectures” for its data center and client segments.

But networking now looks to be back in the frame. And the 180 comes at a time when Intel’s fortunes look a little less bleak.

Nvidia agreed to invest $5 billion in Intel to develop custom data center and PC hardware. The U.S. government has taken a 9.9% stake in the company as part of an $8.9 billion investment. And SoftBank injected a further $2 billion.

With the previously financially strapped firm now buoyed with cash and support, its networking unit may just work on solutions to support its strategic endeavors for AI and data centers.