"Yes, OnLive works on cell phones, too," the company's enterprising CEO Steve Perlman assured us all ... fifteen months ago. Did you forget? 'Cause HTC sure didn't. The smartphone manufacturing giant has unannounced plans to buy 5.3 million OnLive shares at $7.50 each -- that's about a $40 million stake in the cloud-based technology outfit -- to better position itself in the gaming segment of the smartphone market, reports The Wall Street Journal. Currently, HTC designs smartphones for both the Android and Windows Phone 7 platforms.

HTC's investment would follow the reported $60 million raised by OnLive in 2010 through investments by British Telecommunications and Belgacom Group. During CES last month, OnLive also unveiled a partnership with Vizio to bring its games-on-demand service to a suite of products, including TVs and Blu-ray players.

This article was originally published on Joystiq.