Intel settles with Nvidia, coughs up $1.5 billion

Chip giant Intel has settled its beef with Nvidia, agreeing to pay the graphics card specialist $1.5 billion over the next six years for use of its patents.

The deal, which follows legal disputes between the two companies, sees Intel agree to a new cross-licensing deal with Nvidia, in which the x86 giant agrees to five annual payments of $300 million to Nvidia beginning on the 18th of January this year.

While allowing Intel full access to Nvidia's patented technologies, the deal sees some of Intel's patents declared off-limits - including patents on certain processor technologies, the company's flash memory technologies, and selected chipset technologies.

Jen-Hsun Huang, Nvidia's chief executive, said of the deal: "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."

The move gives Nvidia a significant cash boost over the next few years, and comes despite the company's clearly avowed intention to compete with Intel on desktop and server processors using its ARM licence to produce chips under the codename Project Denver.

Intel, understandably, is less ebullient about the terms of the deal and has yet to issue an official statement.