Intel and Nvidia have announced a cross-licensing agreement worth up to $1.5 billion (going to Nvidia) and this will end the long-standing litigation between the two. The move comes as the two chip-makers are poised to clash even further in the mobile space.
As for the $1.5 billion settlement, Intel was accused of engaging in anti-competitive practices in the desktop and laptop computer chip business, which it is the dominant player thanks to its near-monopoly of Windows and Mac computers. Intel admits no wrong-doing in the $1.5 billion settlement.
The move comes as Nvidia is coming off a great CES 2011, where it was an unheralded star of the show. The Nvidia dual-core Tegra 2 chip powered many of the best devices at the show including the much-hyped Motorola Xoom and Atrix 4G and the beastly LG Optimus 2X. Check out our in-depth look at the LG Optimus 2X here.
Nvidia is definitely going to be a player in the mobile chip space, as the future Tegra chips are already being worked on. With Microsoft announcing it will bring Windows to ARM chips, Nvidia will also be clashing with Intel on the desktop space.
As for Intel, the company has been dragging its feet in the mobile space but it knows that this is the future of computing and it is taking multiple steps to get in the game. The $1.4 billion buy of Infineon won’t put it in direct competition with the Tegra line because these will primarily be the communication radios, but it’s a large leap into the mobile space.
Intel will also be making more moves into the mobile processor space over the next few months and years and you know that it will be a fierce contender. The $1.5 billion settlement between these two means one battle is done but the war is far from over.
[Via MarketWatch, photo]
