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Intel and NVIDIA have a common enemy -- the resurgent AMD. The pair are reportedly in talks to settle a long-standing lawsuit and increase their cooperation.  (Source: Anandtech)

AMD is currently crushing NVIDIA in the discrete GPU market and gaining ground on Intel in the CPU market.  (Source: AMD)
Union may represent effort to hold off surging AMD

NVIDIA has new GPUs (the 500 series) -- but so does AMD.  And AMD is currently beating NVIDIA in sales of discrete GPUs. 

Likewise Intel, long having dominated the netbook/light laptop market with its Atom process is concerned about AMD's new "Fusion" accelerated processing unit, which packs a better integrated GPU than atom.  Intel's primary hope to hang on to its market share involves pairing Atom with NVIDIA's ION lightweight GPU at an affordable price.  But Intel and NVIDIA have been involved in a bitter long-standing feud that has resulted in Intel making ION offerings more expensive than its own inferior chipset.

But much like Lex Luthor and Superman occasionally do in the comics, these bitter enemies have found cause to try to set their difference aside, while facing a common threat.  The pair was set to go to battle with each other in a trial starting Dec 6 in Delaware's Chancery Court.  NVIDIA and Intel, though, have asked the court to postpone the trial concerning licensing issues to 2011, buying time for a settlement.

Nvidia CEO Jen-Hsun Huang coyly commented, "We’re always in talks.  Our two companies are always in talks."

The settlement would be advantageous to both firms.  Both have grown weary during the long legal campaign, which has stretched over six years, since being filed in 2004.  The legal battle has been filled with suits and countersuits, with both chipmakers trying to deny each other access to their respective technologies, and alleging breaches of contract.

While Intel is the largest CPU chipmaker and NVIDIA is the world's second largest graphics chipmaker, both companies have missed out on potential revenue that could have come from joint products.

If they can reach a settlement, the quality of desktop hardware could be boosted.  By allowing NVIDIA the right to make chipsets for its new CPUs, something that Intel has currently rejected, consumers could gain access to faster gaming and productivity offerings.  And in the netbook sector the pair could at last offer an affordable ION+Atom platform that would mark a true competitor to AMD's dual-threat "Brazos" Fusion chip.

Is NVIDIA finally ready to put away its "can of whoop-ass"?  We should have an answer to that in weeks or months to come.


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RE: I propose a vote :P
By karielash on 12/2/2010 4:20:55 PM , Rating: 3
Fixed :)

I believe Intel is evil and its just difficult for AMD to compete with a company constantly (and found guilty of in multiple countries) acting illegally to block competing products.

Intel - Tons of Cash
Intel - Willing to bribe blackmail or otherwise illegally influence vendors.

AMD - Low Cash
AMD - Globalfoundries/TSMC usually 6-12 months behind Intel.


RE: I propose a vote :P
By dsumanik on 12/5/2010 1:45:26 PM , Rating: 2
I believe Intel should just buy nvidia and be done with it.

They have never been able to release truly competitive graphics technology, and the game has changed now because amd has now shown it is possible to have your cake and eat it too with fusion.

These "peace talks" could be just the start of such a merger, i mean really...intel is basically admitting it needs nvidia to be competitive at the moment.

buy em and be done with it... recoup some of the cost of the merger through the stock increase that would happen to nvidia.

(not through insider trading, i just mean how often do you get to purchase something and it becomes MORE valuable )


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