Intel to Pay Nvidia $1,500,000,000 for Licensing

Nvidia released news today that Intel has agreed to pay the graphics maker an aggregate of $1.5 billion in licensing fees payable in five annual installments, beginning Jan. 18, 2011.

Just as big news is that Nvidia and Intel have also agreed to drop all outstanding legal disputes between them.

“This agreement signals a new era for Nvidia,” said Jen-Hsun Huang, NVIDIA’s president and chief executive officer.  “Our cross license with Intel reflects the substantial value of our visual and parallel computing technologies. It also underscores the importance of our inventions to the future of personal computing, as well as the expanding markets for mobile and cloud computing.”

Under the new agreement, Intel will have continued access to Nvidia’s full range of patents.  In return, Nvidia will receive an aggregate of $1.5 billion in licensing fees, to be paid in annual installments, and retain use of Intel’s patents, consistent with its existing six-year agreement with Intel. The existing agreement is to expire March 31, 2011.

This excludes Intel’s proprietary processors, flash memory and certain chipsets for the Intel platform.

The conference call starts soon, so we'll let you know if new details arise.

Marcus Yam
Marcus Yam served as Tom's Hardware News Director during 2008-2014. He entered tech media in the late 90s and fondly remembers the days when an overclocked Celeron 300A and Voodoo2 SLI comprised a gaming rig with the ultimate street cred.
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  • davewolfgang

    Now who was saying Nvidia is dead???? AMD fanbois (did I spell that right? I'm not up on L33T speak.)? :-p
  • hokkdawg
    Sorry AMD...

    I can only hope this opens the door to the promised land of awesome computing advancements in the next decade!
  • decembermouse
    This is big. I kinda doubt we'll see Intel mobos with Nvidia chipsets but one can hope! One can also hope that they'd overclock decently.
  • phosun3000
    Look out below AMD!
  • Snipergod87
    Doesnt look like they will have access to x86 though
    This excludes Intel’s proprietary processors, flash memory and certain chipsets for the Intel platform.
  • Niva
    Good for nVidia and Intel.

    Not sure what and if this has much to do with AMD at this stage though.
  • meat81
    Well since it does not look like Nvidia will be making any new AMD chipsets (dammit!) this is the next best thing Nvidia can cash in on. Freaking wish AMD would have SLI on boards for Dozer when it comes out. AMD really put themselves in a corner not continuing that relationship.
  • micr0be
    the future looks bright for us consumers :)
  • burnley14
    That's a lot of zeroes.