Intel Looking to Partner with AMD after License Agreement with NVIDIA Ended
Intel is looking for a new partner after its partnership with NVIDIA ended last March. The good thing is, the Santa Clara County-based company might soon find its next partner at the adjoining Sunnyvale City, home of Advanced Micro Devices, also known as AMD.
Just recently, Fudzilla confirmed that Intel is talking graphics licensee agreement with AMD. This did not come as a surprise as rumors about license talks had been circulating for months following early reports that partnership between Intel and NVIDIA will soon end.
Both AMD and Intel have yet to confirm the deal. However, reports suggested that it was Radeon's Chief Architect Raja Koduri who may have played a vital role in the negotiation as the man has strong ties with Intel. It is also too early to tell what kind of agreement the two companies entered but it is believed to cover access to AMD's graphics Intellectual Properties and Radeon technologies.
With the word of Intel's partnership with AMD, Yahoo Finance reported that the Sunnyvale-based company's share rose to about 7.4 percent during midday trading last Tuesday. The report also suggested that the partnership with Intel will boost AMD's value even more following growth of more than 200 percent since last year.
What Went Before
Based on the agreement signed by NVIDIA and Intel back in January 2011, the two companies entered into a patent cross license agreement and agreed to settle the litigation as posted on NVIDIA. In turn, "Intel will pay NVIDIA licensing fees which in the aggregate will amount to $1.5 billion, payable in annual installments, as follows: a $300 million payment on each of Jan. 18, 2011, Jan. 13, 2012 and Jan. 15, 2013 and a $200 million payment on each of Jan. 15, 2014, 2015 and 2016."
The contract also stated a "Capture Period" which is set on or prior to March 31, 2017. This date indicates the last date of validity of the license agreement.
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