The i960's roots are the iAPX 432, a "micro-mainframe" processor that Intel started in 1976 to revolutionize microprocessors with 32-bit mainframe power in an object-oriented chip. Spoiler: it did not. Far behind schedule, Intel introduced the 8086 processor, a temporary stopgap.
1982: Intel is developing too many 32-bit processors: the 432, the 386, and the VAX-like P4. They merge the 432 and the P4 to form the i960 project. Intel doesn't realize the importance of x86 so support for the 386 is weak, but they continue 386, treating it as the "stepchild".