Intel will pay NVIDIA $1.5 Billion in licensing fees over six years

NVIDIA official 3d logo

NVIDIA has officially announced it’s new six-year cross-branding agreement with Intel beginning January 18, 2011. This agreement will have Intel payout a total of $1.5 billion (in five easy installments) in exchange for NVIDIA technology licensing fees.

NVIDIA and Intel have also agreed to graciously drop all outstanding legal disputes between them, giving Intel full access to all of NVIDIA’s large range of patents and technical intellectual property. In return, NVIDIA will receive an aggregate of $1.5 billion in licensing fees and retain use of Intel’s patents.

Pretty good deal huh? Looks like AMD and their child company ATI have their work cut-out for them – but they should be fine as long as they can keep up.

Jen-Hsun Huang, NVIDIA’s president and chief executive officer, also had some comments regarding the new agreement:

This agreement signals a new era for NVIDIA. 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.

Read more in NVIDIA’s official press release.