Intel Courting nVidia - Update

[[Update]]

No news of the discussions regarding the Intel/nVidia merger have surfaced for a few days now and analysts are getting restless. An analyst for Merril Lynch claimed, We don't think there's a solid rationale for a deal and we don't think it's going to happen. Others are also now appearing to be sceptical of the chances of a merger quoting nVidia's expensive price and the possibility of antitrust issues as reasons.

What analysts are now suggesting is that nVidia needs the merger more than Intel as it will soon find itself the weaker side in the graphics market; AMD and Intel will have the majority of the motherboard market while ATI and Intel are expected to dominate the low end graphics market. This might suggest that other big electronics companies may be tempted to approach nVidia, with Samsung seeming to be the most likely candidate. The company's advanced graphics know-how, especially as DX10 is round the corner, may serve as a prestige temptation for future suitors.

Stay with MegaGames for more news on the Intel/nVidia merger.

[[The Rumor]]

Ever since the AMD takeover of ATI it has been clear that Intel would have to react in some way. It now seems that the reaction may be the most obvious one; the acquisition of nVidia.

The rumor that a deal is being discussed has gone from strength to strength in the past few days and today even managed to boost nVidia's share price. An Intel spokeswoman has declined to comment on market speculation while nVidia has yet to comment. These rumors are not new and had been around since July and the breaking story of the AMD/ATI deal but today has seen a powerful comeback for the Intel/nVidia romance.

There is speculation that Intel will make an acquisition announcement tonight, said Bill Lefkowitz, options strategist at brokerage firm vFinance Investments in New York. The resurfacing of the rumors however, does seem odd as nVidia is very expensive, about USD 10 billion, while Intel already has a thriving graphics section, something which AMD did not have before the ATI acquisition. There are, of course, issues of prestige and the need to be associated with a high-tech graphics company but this would seem more like tit for tat rather than a sound business move, unless Intel has some other plans which may need nVidia expertise, such as developing in-game physics, unified shader architecture etc.

It will be interesting to see how this story progresses, stay with MG for all the latest.

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Comments

Intel Courting nVidia - Update

It's going to be reality whether theres benefit or not...We've also been told for years now that eventually it would be a case of being an "ATi" or "Nvidia" gamer, this is just another step in the process.Competition between AMD and Intel is going to get more fierce for sure for the foreseeable future.In the end only price will matter especially as we move into the multicore generation.

Intel Courting nVidia - Update

QUOTE: 16:36 "Intel has shown its power with the Core 2 Processors that slaughter any AMD chip."You think the C2D CPUs can slaughter any AMD chip? How long did AMD dominate Intel for the longest time with it's X2 processors? Try YEARS.Until the C2D has been out as long as the X2s were when they dominated, you can't make that statement.The C2Ds are very nice indeed, but not so good where you can so "ohhhh AMD is done for." Get realistic, they will counteract with something sooner than you think. ;)

Intel Courting nVidia - Update

yeah i agree with post below me. Core2 duo may be in dominance but intel was in shame for many years.Anyhow, that nvidia intel merge rumor. Well I only see positive side that powerful laptops will finally have decent gpus in the chipset, not the old crap from intel or SIS that works well for Office, but thats about it.

Intel Courting nVidia - Update

Slaughter AMD? Intel does have alot bigger capital so it can invest alot more into technology and such, however... only an idiot would want INTEL DOMINANCE or AMD dominance. IT WOULD MEAN MONOPOLISM where prices are 2x the value and nothing pushes the technology

Intel Courting nVidia - Update

QUOTE: Accident "Core2 duo is garbage."You lost your credibility making that statement. The Core 2 Duos ARE the best processors out right now whether you like it or not.Just remember the C2Ds have only been out for a month, and I don't think they will dominate AMD in 2007.The performance crown keeps going back and forth. You can't really say one Intel or AMD is better than each other because they are virtually equal.

Intel Courting nVidia - Update

why dont we all wait till the quad-core war its sooner than you think so everyone upgrading now, you are all idiots. wait i say till next year and you'll get way more bang for your buck as the heat between the two increases. intel aldeady has a monopoly already, do a google search.

Intel Courting nVidia - Update

Actually there are a lot of idiots on this forum.. In reality there in no reason for Intel to lose to AMD. Intel is a giant and the world biggest chip maker, and AMD is small time next to them. Remember the fact that even though AMD was dominant the last few years performance wise, Intel still destroyed them in sales. Intel finally decided to put together a new architecture " Core 2 Duo" and it destroys the best offering from AMD by 40%. Intel's quad core performace aka Kentsfield is just scary. AMD will have nothing on Intel for the rest of the year and 2007. Intel will lead for a very long time now since they have now decided to beat AMD in performance and not just sales. This is fact folks Intel is huge and AMD is very very small.

Intel Courting nVidia - Update

I don't think this article is credible at all. Intel brought the PowerVR engineers to work on thier CPU/GPU intergration. Not only that, but Intel is so huge, I doubt they could legally merge with Nvidia without creating a market monopoly.

Intel Courting nVidia - Update

Intel could buy 2 nvidias if they wanted, and they are a monopoly practically alrdy, thats why AMD bought ATI in the first place, to get some market share away from Intel on the intagrated gpu market and creating chips with practically no problems on bandwith to travel, their together.

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