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Intel Pays Nvidia $1.5 Billion To Settle Patent Dispute

Intel has agreed to pay rival Nvidia $1.5 billion in a six-year cross-licensing patent deal as a part of an out-of-court settlement to a long-running patent infringement lawsuit.

The deal will allow Intel to access Nvidia's extensive GPU and supercomputing portfolio for making PC chips, while Nvidia will be granted access to Intel's microprocessor and chipset technology.

The deal will not allow Nvidia to access Intel's x86 server designs and patents related to flash memory.

Nvidia CEO Jen-Hsuan said in a statement: “The cross-licensing agreement allows Intel to integrate NVIDIA technologies and those that are covered by our patents into their CPUs, such as Sandy Bridge, for example.”

"And a cross-license allows us to build processors and take advantage of Intel patents for the types of processor we're building—Project Denver, Tegra, and the types of processors we're going to build in the future," he added.

The settlement is a part of Intel's efforts to wind up its extensive legal disputes. Intel had recently agreed to pay $1.25 billion in a five year cross-licensing patent deal with AMD as part of a similar dispute.