Earlier this year Nvidia revealed plans to develop a netbook platform alongside VIA, supposedly in an effort to beef up their share of the segment compared to behemoth Intel. Shortly after that, however, rumors began to emerge that Nvidia was simply using the alliance as a bargaining tool in negotiations with Intel.

While such negotiations have not been confirmed, DigiTimes is now reporting that the Nvidia and VIA have officially suspended their cooperation, which would have seen VIA’s C7 and Nano CPUs coupled with Nvidia’s MCP79 processor – also known as the GeForce 9400M. It remains unknown why the companies would suspend their netbook efforts, but VIA says the two are still continuing to cooperate and will showcase co-developed desktop PC products at CES 2009 so it’ll be interesting to see what they have in store.