Earlier this year rumors began to emerge that Nvidia and VIA were teaming up to take on Intels Atom, in a cooperation that would see VIAs C7 and C8 processors paired with Nvidias own IGP to form a new VN platform. Apparently, though, Nvidia has its own agenda and is set to abandon VIA in hopes of getting its GPU tech into the Atom platform.
This according to DigiTimes sources, who claim that the graphics firm was simply using the alliance as a bargaining tool to persuade Intel to let Nvidia offer its MCP73 IGP chipset for use in Atom-based systems. If true, it would be a major blow for the relatively small chip company and would strengthen Atoms position in the low-cost market.
The two have had their share of disagreements recently, with Intel stonewalling Nvidia's Nehalem chipsets and Nvidia refusing to give them an SLI license. Its not hard to imagine, then, Atom support being rolled into their negotiations too. But for now well take this for what it is a rumor.