Intel to Pay Nvidia $1,500,000,000 for Licensing
Nvidia announced today that it has signed a new six-year cross-licensing agreement with Intel.
Nvidia released news today that Intel has agreed to pay the graphics maker an aggregate of $1.5 billion in licensing fees payable in five annual installments, beginning Jan. 18, 2011.
Just as big news is that Nvidia and Intel have also agreed to drop all outstanding legal disputes between them.
“This agreement signals a new era for Nvidia,” said Jen-Hsun Huang, NVIDIA’s president and chief executive officer. “Our cross license with Intel reflects the substantial value of our visual and parallel computing technologies. It also underscores the importance of our inventions to the future of personal computing, as well as the expanding markets for mobile and cloud computing.”
Under the new agreement, Intel will have continued access to Nvidia’s full range of patents. In return, Nvidia will receive an aggregate of $1.5 billion in licensing fees, to be paid in annual installments, and retain use of Intel’s patents, consistent with its existing six-year agreement with Intel. The existing agreement is to expire March 31, 2011.
This excludes Intel’s proprietary processors, flash memory and certain chipsets for the Intel platform.
The conference call starts soon, so we'll let you know if new details arise.
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Does this mean Nvidia can move back into the chipset business?
(Though, given the level of CPU integration now I'm not sure they'd want to.)
Maybe we'll see some new things develop now
Not sure Nvidia will get back into the chipset business, but by golly this will add more fuel to the Nvidia x86 CPU rumours.
Not sure Nvidia will get back into the chipset business, but by golly this will add more fuel to the Nvidia x86 CPU rumours.
If anything it does more to quash them. Nvidia do not get an x86 license out of this
If anything it does more to quash them. Nvidia do not get an x86 license out of this
Not directly, but working through another, licensed, CPU manufacturer (VIA anyone) they may be able to find a legal loophole.
Not directly, but working through another, licensed, CPU manufacturer (VIA anyone) they may be able to find a legal loophole.
What would be the point when they've just made a massive song and dance about project Denver at CES? They're moving into the CPU business, but on the ARM side.
What would be the point when they've just made a massive song and dance about project Denver at CES? They're moving into the CPU business, but on the ARM side.
There wouldn't be a point (especially with MS making a song and dance about windows on ARM), I'm just saying it's feasible.
Intel is seemingly very happy to spend money to settle their differences with their rivals.
I suppose with the US government watching their every move thanks to the myriad of antitrust suits levelled against them, it made perfect sense for Intel to get itself out of the firing line. I just wonder how much the US government could've fined Intel for had the case gone to court... perhaps Intel knew all too well that they were going to lose big had they stuck to their guns against AMD and nVidia. Who knows, perhaps some of that money actually would've gone onto AMD's and nVidia's balance sheets instead of the back pocket of the government, unlike what happened with the EU ruling.
So, a smart decision, all in all.