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Intel to pay Nvidia $1.5 billion in licensing fees

By Emil
Jan 10, 2011
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  1. Nvidia has announced that it has signed a new six-year cross-licensing agreement with Intel. Beginning on January 18, 2011, Intel will pay Nvidia an aggregate of $1.5 billion in licensing fees for the future use of Nvidia's technology. The new agreement has been made in time before the last one expires on March 31, 2011.

    Read the whole story
     
  2. CamaroMullet

    CamaroMullet TS Rookie Posts: 115

    Intel should just buy Nvidia...

    They're like a dysfunctional couple. They have the fighting, the break ups, getting backing togethers, just get married already geeeezzz.
     
  3. Mizzou

    Mizzou TS Enthusiast Posts: 930

    Nvidia must have driven a hard bargain, AMD only got 1.25 billion in their settlement from Intel.
     
  4. Sarcasm

    Sarcasm TS Enthusiast Posts: 343   +20

    Interesting, whatever they're doing they're going to steamroll their performance lead over AMD.

    *sigh* AMD is the underdog in this situation, but how long can they last with budget performance CPUs and GPUs.
     
  5. Jesse

    Jesse TechSpot Staff Posts: 369   +40

    This isn't a settlement, its a strategic move to allow the two companies to share technology.
     
  6. Mizzou

    Mizzou TS Enthusiast Posts: 930

    Hard to say how much longer AMD can play the budget game, especially with Sandy Bridge coming in at very competitive prices. If Bulldozer doesn't deliver ... AMD may be in for some hard times down the road.

    @presmatics - This text is from the article

     
  7. CamaroMullet

    CamaroMullet TS Rookie Posts: 115

    @Mizzou

    I hear ya, my last 3 personal builds have been AMD. I just ordered a Sandybridge mobo and proc, I felt bad at first, but looking at some of the reviews it's hard not to swing back to Intel. I doubt bulldozer will be able to compete honestly.
     
  8. Sarcasm

    Sarcasm TS Enthusiast Posts: 343   +20

    I agree. I think people are pinning hope on Bulldozer, but I really don't expect much out of it either. If anything, it could just end up being another budget integrated chip for budget notebooks or something.

    I got that same feeling when Nvidia released the GTX 580, and the general consensus around the internet was "but but but let's wait for the 6970!!!" And when it came out, there's a whole mixed bag of opinions. Opinions like "oh well... it was aimed at the GTX 570!!!" or "but the performance in some extreme cases at 2560x1200 resolutions it's almost on par with a GTX 580!!!" and now it's but but but the 6990!

    I hope AMD proves people wrong this time though with their new CPUs. Otherwise, it looks like I'm going the Intel/Nvidia route the next time I build another computer again.
     
  9. princeton

    princeton TS Addict Posts: 1,716

    Unless AMD hired macgyver to make high end cpus out of paperclips and string then bulldozer won't be competing well :p
     
  10. Maybe bulldozer will be great since they own ati technology before intel made this agreement with nvidia.
     
  11. princeton

    princeton TS Addict Posts: 1,716

    They've owned ati since the C2D days. And have been behind ever since. This won't be any different man.
     
     
  12. CamaroMullet

    CamaroMullet TS Rookie Posts: 115

    hahaha, exactly.
     
  13. Wagan8r

    Wagan8r TS Guru Posts: 593   +47

    Hopefully, the next time I build a computer, it will just be an NVIDIA Denver computer with Windows 8 ARM version. That is, providing I don't build an HTPC first!
     
  14. dividebyzero

    dividebyzero trainee n00b Posts: 4,910   +716

    AMD got "only" $1.25bn because they were (and still are) haemorraging red ink like a haemophiliac piñata due to the ATI acquistion. AMD needed funds desperately, and more to the point, Intel knew that AMD needed funds desperately.
    Nvidia carries no debt and is a pretty healthy company as far the companys books go, so no reason to accept a quick/small settlement.
    Nvidia (read Jen Hsun Huang) also has the reputation for a single-minded determination in achieving it's goals. If there was a chance in hell that Intel would be found guilty in the suit, then it becomes "practical" to settle given Intel's past run-ins with the courts. Bearing in mind that Intel's earnings for the last quarter amounted to $US2.95bn from $US11bn revenue I can't see Paul Otellini being reduced to eating Hamburger Helper any time soon.
     
  15. Intel has always sold an inferior overpriced product.

    Users just don't want to admit that their systems are not . . . THAT great.

    Nvidia has already spoiled us with their GPU failures and poor drivers.


    So maybe fan boys should wake up and smell the roses.
     
  16. dividebyzero

    dividebyzero trainee n00b Posts: 4,910   +716

    Ah, The Guest account.
    Keeping logical thought processes at bay one post at a time.
     
  17. CamaroMullet

    CamaroMullet TS Rookie Posts: 115

    Ahhhh, so I'm guessing you are one of those ATI/AMD "fan boys"?
     
  18. Mizzou

    Mizzou TS Enthusiast Posts: 930

    All valid points, but in the end it's simply Intel doing what is best for Intel which is smart business. There's a good read on this over on AnandTech: http://www.anandtech.com/show/4122/intel-settles-with-nvidia-more-money-fewer-problems-no-x86/2
     
  19. princeton

    princeton TS Addict Posts: 1,716

    Guest accounts should be removed. There's a reason sites like facepunch have less trolls. It's because people can't hide behind anonymity.
     
  20. princeton

    princeton TS Addict Posts: 1,716

    You trolls need to try harder. You're obviously a fanboy though so maybe you're unintentionally trolling. LGA 1156 and LGA 1155 both have had better price-performance since release. The i5-750/760 destroys anything AMD makes for only $20-30 more and uses much less power.

    The i5-2500K matches or outperforms the intel 975 EE. And the 975 is already 2-3x faster than anything AMD has. And the 2500K is still only $200.

    P,S Nvidia does, has, and always will have better drivers than ati.

    In conclusion... http://img88.imageshack.us/img88/3263/youamd.jpg
     
  21. Ripping on guest posts always makes me smile... a better way to get rid of trolls is to allow readers to downgrade posts to the point they are removed with enough negative marks. Princeton, Facepunch doesn't have "less" trolls, they have 'fewer' trolls. If you can quantify it individually you use the word 'fewer'. Like "Guest posters have fewer valid points"

    Anyway... my question about Intel is, why are the new Sandy Bridge processors priced so low? They appear to be good enough to be priced a bit higher to the point that Intel is cannabilizing their own markets. Are they trying to drive out AMD for good? Head off any less (haha see!) expensive Bulldozer option before it's even released?
     
  22. dividebyzero

    dividebyzero trainee n00b Posts: 4,910   +716

    They are mainstream parts. More to the point they are designed to cannibalize the LGA1156 market. At a 32nm process (putting aside the probable better yields) you are getting significantly more dies per wafer than Lynnfield (216mm² for SB 4 core* versus 296mm² for Lynnfield). If mainstream CPU production is reduced at 45nm then those same fabs can churn out Atom CE4100 (for example) instead.
    Competition regulators would ensure that AMD in some guise would be viable (a monopolies issue) even if AMD's IP and cross-licencing agreements with Intel didn't make it a lucrative acquisition for another company. Intel needs competition- what it doesn't need is strong competition.
    With the beancounters at the helm of AMD I think that the chances of a relatively inexpensive consumer Bulldozer (Zambesi) product line are nearing nil. AMD's board are obviously wanting a bigger return on investment and a higher average selling price for it's products. This makes sense if AMD are trying to quickly boost AMD's P&L, raise the share price and make a tidy profit when Mubadala/ATIC move to claim full ownership of AMD
    "AMD is not for sale, but we are happy to listen to any proposal which is in the interest to our shareholders," [now Ex-]Chief Executive Dirk Meyer told an industry conference in Barcelona.
    A rather ambiguous statement at best, and maybe not the vision that the rest of the board share.

    * The die per wafer ratio improves to a greater extent if you factor in Sandy Bridge 2 core -GT1 and GT2 -parts ( 131 and 149mm² respectively)
     
  23. Intel seems to operate at Gross profit margins of 35-50% .. which is fantastic for their shareholders but makes you realize that if they wanted/needed to, with a bit of cost cutting, they could price AMD out of the market,even with product priced at 50% less. The market is a bit more complicated than that of course. I haven't upgraded from Xp/C2D and would dearly love one of these new sandy bridge *but* I think I''ll spend on SSD and more RAM first, and wait for the next gen. I am more interested in getting a UEFI mobo as well. May even wait for W8, and go Octo all round (w8, 8gb ram 8tb storage 8core CPU)
    Guest accounts must stay
     


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