Intel To Pay NVIDIA Technology Licensing Fees of $1.5 Billion

Ok so this is rather un-expected and extremely good for stockholders.  Not only does Intel and nVidia agree to drop all legal disputes but over the next 6 years Intel will be paying nVidia to use their technology.

For the future use of NVIDIA’s technology, Intel will pay NVIDIA an aggregate of $1.5 billion in licensing fees payable in five annual installments, beginning Jan. 18, 2011.  NVIDIA and Intel have also agreed to drop all outstanding legal disputes between them.

“This agreement signals a new era for NVIDIA,” said Jen-Hsun Huang, NVIDIA’s president and chief executive officer.  “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.”

So what does this mean?  Based on what I am reading it means that nVidia is once again open to create chipsets using Intel technology along with anything else Intel has a patent on.  Likewise it means Intel can integrate SLI technology into their chipsets and use technologies related to GPU technology in their products.

That might be an over simplification but considering that Intel is willing to pay for this six year cross-licensing agreement means there is something nVidia has that they really want.

Related Web URL: http://pressroom.nvidia.com/easyir/customrel.do?ea...