Chipmaker Intel Corp. (INTC) agreed to pay rival Nvidia (NVDA) $1.5 billion so that the chip giant can use Nvidia technology.
The deal ends a legal battle between the two companies. Intel had previously sued Nvidia over the right to keep making an Intel-designed chip, BBC News reported. Nvidia then counter-sued.
"This agreement ends the legal dispute between the companies, preserves patent peace and provides protections that allow for continued freedom in product design," said Doug Melamed, Intel senior vice president and general counsel.
Intel can now use Nvidia's graphics-processing technology at a time when smartphones and tablet computers have boosted the demand for high-resolution graphics.
"This agreement signals a new era for Nvidia," said Jen-Hsun Huang, Nvidia's CEO, according to BBC News.
"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."
Take the first steps to building your portfolio.View Course »