Nvidia signs six-year cross-licensing contract with Intel

Semiconductor chip developer Intel has signed a new six-year cross-licensing contract with Nvidia, the inventor of the GPU, in which it will puchase future use of Nvidia’s technology by paying an aggregate of $1.5bn (£1bn) in licensing fees payable in five annual installments, beginning 18 January 2011.

Under this agreement Intel will have continued access to Nvidia’s full range of patents, while all outstanding legal disputes between the companies are dropped.

In return, Nvidia will receive an aggregate of $1.5bn 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.