Intel will pay graphics chip designer Nvidia $1.5 billion to license its technology, settling a legal dispute and smoothing the way for
better competition in PC processors.
For the future use of NVIDIA's technology, Intel will pay NVIDIA an
aggregate of $1.5 billion in licensing fees payable in five annual
installments, beginning Jan. 18, 2011, Nvidia annoucned today.
NVIDIA and Intel have also agreed to drop all outstanding legal
disputes between them.
The agreement was a major victory for Nvidia. The deal gives Intel
the right to use Nvidia's technology in its PC chips as graphics
processing becomes increasingly important. Nvidia gets to use some of
Intel's technology as it works to build its own PC central processors, using architecture licensed from Britain's ARM Holdings.
"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. This excludes Intel's proprietary
processors, flash memory and certain chipsets for the Intel platform.
The existing agreement is to expire March 31, 2011.
Last week, Nvidia announced at CES 2011
it is developing an ARM-based
PC central processor under the code name "Project Denver" and will
aim them at everything from workstations to supercomputers, directly
The legal dispute settled on Monday began when Intel sued Nvidia in
2009 and Nvidia counter-sued over licenses for technology used to
make chipsets, which are groups of integrated circuits that connect
to the microprocessor in a PC.