Struggling Nvidia claims a CPU strategy

Graphics chip outfit Nvidia said it made a net loss of $141 million in its second financial quarter of the year it calls 2011. This was even worse than the $105.3 million loss it made a year earlier.

The firm set aside a charge of $193.9 million with which to settle a class-action lawsuit over its Bumpgate fiasco, that Charlie exposed so well. The charge brings the total charge related to the cock-up to $475.9 million, the company said.

Perhaps worse news was the revelation that the outfit's sales of graphics chips and chipsets fell by 29.5 per cent from Q1.

Faced with such woes, Nvidia's CEO Jen-Hsun Huang came out in typically combative mood insisting in an interview with CNET that the company has a future beyond graphics chips, a product which will have a limited shelf-life beyond a specialist niche.

"Our CPU strategy is ARM," Huang said. "ARM is the fastest growing processor architecture in the world today. ARM supports Android best. And Android is the fastest growing OS in the world today," he burbled.

Nvidia's Tegra-branded chips are all based on ARM designs, although Tegra 2 should have been delivered by now but hasn't been.

Referring to legal spat Nvidia is embroiled in with anti-competitive Intel on various fronts, Huang said Intel had effectively made it impossible for Nvidia to revive its chipset business

"They have disrupted our chipset business," he sobbed. "The damage has been done. We've been out of the chipset business for well over a year, so if this got resolved we're not expecting to ramp back up the thousand engineers that we had working on chipsets."