Nvidia has announced that it will be suspending chipset development for Intel’s processor until a licensing issue is not resolved between both the companies.
Nvidia is suing Intel in a Delaware court over whether Nvidia’s current license covers the new technologies used in Intel’s latest microprocessors based on Nehalem microarchitecture. This technology is known as DMI and is implemented directly in the microprocessor. Intel has plans to use it in its future microprocessors.
Nvidia claims that Intel is giving its customers a wrong message stating that Nvidia is not licensed to use the new DMI bus. Taking this into account, Nvidia believes that it would be impossible for them to market chipsets for future Intel CPUs. Until the issue is resolved, Nvidia has decided to postpone all of chipsets for Intel DMI CPUs.
Chipsets are used to connect the microprocessor to the computer’s power supply and other peripheral components.
Intel has not made any comments on the issue till date. Intel believes that it is their decision and so it has nothing to say on the issue.
Intel has asked the court to rule on the 2004 licensing agreement after it became evident that the two companies wouldn’t be able to come to understanding over the two-year-old dispute. Intel is not seeking any damages. It is very likely that the court will hear the case in 2010.
Earlier in March, Nvidia countersued Intel in the same court accusing it of breach of contract. Nvidia is seeking termination of Intel’s license to Nvidia’s patent portfolio which includes 3-D GPU technologies.
In the recent years, Intel has been concentrating more of expanding the graphics capabilities of its chipsets. This is affecting Nvidia’s marketshare. On the other hand, Nvidia is making attempts to replace Intel chipsets.