Nvidia receives $1.5bn settlement from Intel Corp

Payout will enable better competition in PC processors market

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Nvidia receives $1.5bn settlement from Intel Corp Nvidia has won a $1.5bn settlement from Intel Corp to licence its technology.
By  Georgina Enzer Published  January 11, 2011

Graphics chip designer Nvidia is to receive $1.5 billion from Intel Corp to license its technology. This pay-out eases the way for better competition in PC processors and settles a legal dispute between the two companies, according to Reuters.

The agreement, a major victory for Nvidia, gives Intel the right to use Nvidia's technology in its PC chips. The deal sent Nvidia's shares up 4.45% after market closing.

Nvidia will be able to use some of Intel's technology in its own PC CPUs, announced last week, which use architecture licensed from Britain's ARM Holdings. The processors are code-named ‘Project Denver' and will be aimed at everything from workstations to supercomputers, challenging Intel.

Under the agreement, Nvidia will not be able to use Intel's x86 technology.

The legal dispute, which was settled with the agreement, began when Intel sued Nvidia in 2009 and Nvidia counter-sued over licenses for technology used to make chipsets.

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