In a filing with the Taiwan Stock Exchange, HTC said it would buy 5.33 million shares in US-based OnLive at $7.50 per share as part of a partnership.

Six months after reportedly receiving investment at more than a $1bn valuation, online gaming service OnLive has raised $40m from Taiwan-based smartphone maker HTC.

In a filing with the Taiwan Stock Exchange, HTC said it would buy 5.33 million shares in US-based OnLive at $7.50 per share as part of a partnership.

Peter Chou, chief executive of HTC, said: "In a world of mobile internet ubiquity, content is king but it’s not all created equal. OnLive provides a connected cloud-based gaming…