Creative Technology has come to an agreement with Intel to license out their GPU chip technology as they move forward with plans to focus on their core strengths: audio equipment. The Singapore technology company will also sell ZiiLabs Limited (formerly 3DLabs) to Intel as part of the deal valued at $50 million.

Creative released a statement earlier today outlining the specifics of the deal. Intel will hand over $20 million for the right to license GPU technology currently owned by ZiiLabs Inc., a subsidiary of Creative. The rest of the money will be used to transfer engineering resources and assets from ZiiLabs Limited to Intel.

ZiiLabs Limited currently designs and develops silicon but they have discovered recently that it's more cost efficient to outsource this step to third party providers. Creative CEO Sim Wong Hoo said that as advanced media processors beyond 28nm become more complex and expensive to develop, his company has to find new ways to work with partners to provide customers with continued product innovation.

"With this announcement, we gain increased flexibility with the ability to partner with multiple semiconductor companies on advanced design and process technologies, allowing us to mitigate risk while maintaining control over the long-term direction of our product portfolio," Hoo said.

The company known for audio products will continue to monetize their patent portfolio which reportedly contains more than 100 pieces of intellectual property. The funds they will pick up from Intel should also go a long way as Creative has experienced 14 consecutive quarters of loss.

The two say the deal should be complete by the end of 2012.