Intel Settles NVIDIA Patent Case with $1.5 Billion

Intel and NVIDIA finally kissed and made up on Monday, settling a multi-year patent infringement lawsuit. As part of the deal, Intel agreed to pay NVIDIA US$1.5 billion over the next five years and the two companies will cross license certain patents.

“Under the transaction, Intel receives a license to NVIDIA’s patents subject to the terms of the agreement,” Intel said in a statement. “NVIDIA receives a license to Intel’s patents subject to the terms of the agreement, including that x86 and certain other products are not licensed to NVIDIA under the agreement.”

Computer makers hoping the companies would reach an agreement that allowed for Intel processors with integrated NVIDIA GPUs are most likely in for a disappointment since the deal blocks NVIDIA from designing chips that use Intel’s processors.

Doug Melamed, Intel’s senior vice president and general counsel, added “This agreement ends the legal dispute between the companies, preserves patent peace and provides protections that allow for continued freedom in product design.”