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Intel to Pay NVIDIA Technology Licensing Fees of $1.5 Billion

Discussion in 'News' started by btarunr, Jan 11, 2011.

  1. btarunr

    btarunr Editor & Senior Moderator Staff Member

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    NVIDIA announced today that it has signed a new six-year cross-licensing agreement with Intel. For the future use of NVIDIA's technology, Intel will pay NVIDIA an aggregate of $1.5 billion in licensing fees payable in five annual installments, beginning Jan. 18, 2011. 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. This excludes Intel's proprietary processors, flash memory and certain chipsets for the Intel platform.

    The existing agreement is to expire March 31, 2011.

    Pursuant to U.S. GAAP, a portion of the proceeds will be accounted for and attributed to the settlement of prior legal claims. This amount, which NVIDIA anticipates to be less than $100 million, will be included in the company's fourth-quarter results.

    The balance of the licensing fees will be accounted for on a straight-line basis over the six-year term of the agreement. Accordingly it is anticipated that this would amount annually to approximately $233 million of operating income and an increase in net income of $0.29 per diluted share, on a full year basis.
  2. wolf

    wolf Performance Enthusiast

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    interesting... no wait the other one.. tedious.
  3. random

    random

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    Wow, these two companies are like a married couple ...
    Wrigleyvillain and GSG-9 say thanks.
  4. skellattarr

    skellattarr

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    i wonder if nvidia will ever make chipsets for amd again
  5. GSG-9

    GSG-9

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    I like that expression.
  6. Bjorn_Of_Iceland

    Bjorn_Of_Iceland

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  7. Delta6326

    Delta6326

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    yummy stocksssssssssssssssssssssss
  8. afw

    afw New Member

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    Teaming up to take down AMD ???
  9. Jamborhgini313

    Jamborhgini313 New Member

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    Invidia
  10. RejZoR

    RejZoR

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    They weren't bad but i wouldn't call them great either. Especially driver support was crappy and just cut off after a while. I was on nForce 2 at that time...
  11. Frick

    Frick Fishfaced Nincompoop

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    Sound and overclocking was pretty good though, at least on my Abit NF7-S. :p
  12. Mussels

    Mussels Moderprator Staff Member

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    nvidia chipsets just got worse after that. unstable boards, sata controllers corrupting drives, certain chipsets killing memory... etc etc.

    not to mention their shit drivers - all nvidias old drivers are useless for their older hardware
  13. dir_d

    dir_d

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    hmm...is intel trying to pick up some GPU techniques to battle AMD?
  14. nINJAkECIL

    nINJAkECIL New Member

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    maybe Intel licensing nvidia's SLI to be implemented on their new LGA2011 chipset.
  15. Mussels

    Mussels Moderprator Staff Member

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    thats my guess. intel paid big to get SLI on their chipsets, rather than give nvidia a licence to make nforce chipsets for the new sockets.
  16. Swamp Monster

    Swamp Monster

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    So that's from where Sandy bridge GPU came from!:laugh:
    Also they realised that Larabee was screw up, so they now learn from Nvidia's patents, to revive it. They should call their next GPU a FrankenGPU - It's aliveeeeee:roll:
  17. Bundy

    Bundy

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    meh, 1.5 B pays for a lot of Sli licences. I think it is literally like what Btarunr said, for access to all their patents. Invidia PC's, Invidia consoles, Invidia phones, Invidia tablets - everything. This is a big deal they have put together.
  18. Red_Machine

    Red_Machine

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    The 980a, by any chance?

    Heh, another original Xbox. Yay.
  19. LittleLizard

    LittleLizard New Member

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    nforce again?
  20. wahdangun

    wahdangun New Member

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    no nvdia won't make any chipset for intel again, because that was not part of he deal, but nvdia have access to certain patent intel have, and its look like nvdia will make their own CPU based on ARM architecture.

    btw this deal was nothing new, intel just extended their deal, and the deal have running since 2004, but i'm really curious if intel have access to nvdia patent then why they still making shity GPU ?
  21. marsey99

    marsey99

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    it was my understanding that this was more like the old deal than the current one :/

    both parties sharing, but nothing states what each is sharing.

    would be good to see nv do the mobile board chipsets with intel cpu and intel doing the desktops for nv aic and igpgpu. how good would it be to have sli power on tap when you need it but igp power draw when your not gaming.
    1c3d0g says thanks.
  22. Mussels

    Mussels Moderprator Staff Member

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    AMD, nvidia and intel are all heading in that very direction.

    "green" is the current focus of PC's atm, and dedicated GPU's are an easy target
  23. newtekie1

    newtekie1 Semi-Retired Folder

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    I was kind of hoping this would open the door for nVidia to make Intel Chipsets again(and AMD chipsets), because I'm tired of the lack of competition. This is especially evident on the Intel side.

    Some competition from nVidia on the chipset front might mean we would stop seeing chipsets with only 16 PCI-E lanes for graphics cards, forcing x8/x8 operation with two graphics cards and no chance of 3+ graphics cards. Even back in the 775 days nVidia's lowest end chipset had x16/x16 support. That was one of the reasons I like 750i. It was as cheap as P45, provided all the same features, but provided x16/x16 graphics slots. It just didn't overclock as well as P45.

    I don't think Intel paid nearly as big as many believe, if they paid at all. All Intel paid out was in legal fees to keep the legal despute about the new sockets going, forcing nVidia to pretty much have to give SLi support to Intel chipsets to keep SLi a viable option. Loosing SLi support on the biggest highest performing platforms while ATi had Crossfire support would have been a killer blow to nVidia. And the licencing fees are paid by the motherboard manufactuers, not Intel.
    Crunching for Team TPU More than 25k PPD
  24. cadaveca

    cadaveca My name is Dave

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    I have attached the agreement for those who would like to read it. It has been redacted though.

    Attached Files:

    Mussels and GSG-9 say thanks.
  25. nINJAkECIL

    nINJAkECIL New Member

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    enlightmen me, for I don't do well with "lawyer's words":
    So, nvidia will not give out their gpu design patent to Intel.But Intel does has access to nvidia software, drivers, etc...
    ...I see Intel will make use CUDA-compatible products...

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