Intel pays $1.5 billion for future Nvidia tech

For the future use of Nvidia’s technology, Intel will pay the firm US$1.5 billion in licensing fees.

Both companies have also shaken hands and 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 CEO. “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’a full range of patents and in return Nvidia will receive US$1.5 billion in licensing fees, to be paid in five annual instalments, beginning January 18th, 2011.