Both Intel and NVIDIA have agreed on a six year technology cross-licensing deal which will end the long patent rivalry between these two giant chip makers. The deal was worth of one and a half billion dollar and will allow these two companies to access into each other technology.
According to the deal Intel will pay NVIDIA 1.5 billion dollar over the next 6 consecutive years for an access into NVIDIA’s GPU and supercomputing technology. NVIDIA will get the access to Intel’s patent portfolios like microprocessors and chipsets. But the deal excludes x86 designs by Intel.
Jen Hsuan confirmed the new of this deal and said that the deal will allow Intel to integrate their technologies which are covered by their patents into Intel’s CPU, like Sandy Bridge. NVIDIA will also get the opportunity to use Intel’s technology for their future products like Denver, Tegra etc.
He added that NVIDIA has no intention to build X86 processors rather they are more focused on the ARM processors. NVIDIA does not feel the necessity of building another X 86 products because the market is already saturated by these processors. They are looking to capitalize the growing popularity of ARM processors as they sense it is the processor of the future.
Jen Hsuan referred to the 2004 cross licensing deal with Sony for developing PS3 technology as a precedent. Although he thinks the Sony deal was a tiny one when compared to this new deal with Intel. He thinks NVIDIA will do a good business with Intel for the next six years.
But despite all these agreement NVIDIA has refused to build any more chipset devices that are compatible with Intel product. Jen Hsuan repeatedly said that the company has no intention to build those chipsets. It Seems like NVIDIA is sticking with its guns.