Nvidia to trade technologies with Intel - report

Chicago (IL) - Nvidia apparently is looking for a closer relationship with Intel and release some of its graphics technologies in exchange for an improved cooperation with the world’s largest processor, graphics and chipset manufacturer.

According to Digitimes, Nvidia has had discussions on this topic with Intel and apparently has reached several agreements that could point towards a cooperation. Digitimes cited Motherboard manufacturers as the source for this information.

Further details were not provided. Nvidia and Intel declined to comment on the Digitimes report.

In a recent interview with Toms Hardware, Nvidia executive Rob Csongor said that AMD’s acquisition of ATI resulted in an incentive for Nvidia to work closer with Intel. However, he also mentioned that Nvidia would be heading into the future as an independent graphics company and aim to offer what the industry calls "best of breed" solutions for both AMD and Intel platforms.

If DigiTimes sources are correct, Nvidia may be getting into a very tight relationship with Intel, stopping just short of actually merging its business with the chip giant. Such an agreement could put Nvidia into a much better position to deliver higher-end graphics solutions tailored to Intel’s platforms, but Digitimes’ sources added that "Nvidia needs to be careful about trading its GPU technology," considering the fact that Intel is putting more and more focus on the graphics capabilities of its desktop and mobile client platforms.

Fueled by a strong growth of its chipsets, Nvidia is currently believed to be the largest desktop graphics chip supplier worldwide. According to Jon Peddie Research (JPR), the Nvidia’s desktop graphics shipments surpassed shipments by Intel in the first quarter of the year. Nvidia has also made progress in the mobile market and has taken over the lead in the mobile discrete market from ATI, now AMD. The firm shipped 60.4% of all mobile discrete devices in Q1 2007, according to JPR.

Overall, JPR estimates Nvidia’s market share in the graphics market at 28.5%, behind Intel (38.7%), but ahead of AMD (21.9%).