Intel, Nvidia make 'patent peace,' settle legal disputes

Intel 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.

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.