Intel said Monday that it will pay Nvidia $1.5 billion over the next five years to settle all legal disputes. The two companies have also entered a cross-licensing patent deal.
The chip giant said the settlement "preserves patent peace" between the companies, according to a statement.
Here are the key details:
- Intel gets a license for Nvidia's patents and vice versa;
- Intel and Nvidia have released all legal claims;
- Intel will pay $1.5 billion to Nvidia over five years.
Nvidia said in a statement that it received good value for its intellectual property. The Intel-Nvidia deal excludes Intel patents for processors, flash memory and certain chipsets. The Intel payments will add about $233 million in operating income and 29 cents a share of net income for the full year.