Intel and NVIDIA have decided to work out something together, which is surprising because Intel and NVIDIA haven’t had very good ties in the past. In 2009, Intel sued NVIDIA over rights for making chipsets for its Nehalem processors. Intel has now signed a 1.5 billion dollar agreement with NVIDIA to continue using some of NVIDIA's GPU technology, and NVIDIA also gets access to Intel’s technology for the next five years. The current license was set to expire in March 2011.
Intel has been focusing a lot on its Sandy Bridge architecture and NVIDIA has been doing fairly well through the years with its GeForce line of desktop graphics processors. AMD’s focus has been on fusing together a processor with a graphics component to it, which they have with the new Fusion line of processors. Intel ideally would like to beat AMD at its game. NVIDIA CEO, Jen-Hsung Huang has already made it clear that they have no interest in building x86 chipsets. Instead, they will focus on ARM processors which are the future. Project Denver will be their graphics enhanced ARM processor. This is more important, especially because Microsoft has decided to integrated ARM support in the next Windows OS. The pact means that Intel will have access to a lot of NVIDIA’s GPU technology, and NVIDIA too will have some access. NVIDIA will still not be able to develop chipsets for Intel’s Core i3, i5 or i7 processors, though.