Chip war between Intel and Nvidia

Wednesday, November 3, 2010

Chip war between Intel and Nvidia

Intel has locked horns over Nvidia filed case against the chip giant.

The real trouble that has cropped up is Intel’s acquiring of Nvidia patents graphics technologies. Intel has got the right to Nvidia’s patent in a deal which took place in the year 2004. It was a period when Nvidia’s CEO Jen – shun Huang had witnessed a deal with the firm for a graphics design technology, which Intel was desperately seeking to lift its standard of Graphics design.

Nvidia had already established itself in video gaming sector, with its superior graphics design.

However, the turning point came when Nvidia joined hands with Intel in November 2004, but the deal always faced setbacks from the outset. According to Nvidia chief Jen- Shun Huang, Intel breached the deal, even during the initial period; Intel began selling the Nvidia bundled chip-set along with Intel’s CPU at a price which was lower than the price of CPU.

The move offset Nvidia marketing stability. Intel shunned Nvidia chip-sets, instead began using its own chip-sets, in its advance CPU called Nehalem. Nvidia has stressed the fact that its chip sets would have certainly covered the new Intel’s CPU Nehalem.

The problems continued, and now many leading computer firms won’t like to take on Intel by buying Nvidia’s chip sets. Intel feels the direct competition Nvidia is posing in the field of graphics design. It remains to be seen where the lawsuit would head to.

Will it be a deal for Nvidia from Intel, or the case would proceed to its legal course.

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