Intel to Pay NVIDIA Technology Licensing Fees of $1.5 Billion
New Six-Year Cross-License Renews Previous Agreement

SANTA CLARA, CA — (Marketwire) — 01/10/2011 — NVIDIA announced today that it has signed a new six-year cross-licensing agreement with Intel.

For the future use of NVIDIA’s technology, Intel will pay NVIDIA an aggregate of $1.5 billion in licensing fees payable in five annual installments, beginning Jan. 18, 2011.

NVIDIA and Intel have also agreed to drop all outstanding legal disputes between them.

“This agreement signals a new era for NVIDIA,” said Jen-Hsun Huang, NVIDIA’s president and chief executive officer. “Our cross license with Intel reflects the substantial value of our visual and parallel computing technologies. 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.”

Under the new agreement, Intel will have continued access to NVIDIA’s full range of patents. In return, NVIDIA will receive an aggregate of $1.5 billion in licensing fees, to be paid in annual installments, and retain use of Intel’s patents, consistent with its existing six-year agreement with Intel. This excludes Intel’s proprietary processors, flash memory and certain chipsets for the Intel platform.

The existing agreement is to expire March 31, 2011.

Pursuant to U.S. GAAP, a portion of the proceeds will be accounted for and attributed to the settlement of prior legal claims. This amount, which NVIDIA anticipates to be less than $100 million, will be included in the company’s fourth-quarter results.

The balance of the licensing fees will be accounted for on a straight-line basis over the six-year term of the agreement. Accordingly it is anticipated that this would amount annually to approximately $233 million of operating income and an increase in net income of $0.29 per diluted share, on a full year basis.

Conference Call
NVIDIA will conduct a conference call with analysts, investors and media to discuss the license agreement at 2pm Pacific Time (5pm Eastern Time). To listen to the call, please dial (706) 679 2572; conference ID #: 36343898. A live Web cast (listen-only mode) of the conference call will be accessible at the NVIDIA investor relations Web site www.nvidia.com/ir and at www.streetevents.com. The Web cast will be recorded and available for seven days.

About NVIDIA
NVIDIA (NASDAQ: NVDA) awakened the world to the power of computer graphics when it invented the GPU in 1999. Since then, it has consistently set new standards in visual computing with breathtaking, interactive graphics available on devices ranging from tablets and portable media players to notebooks and workstations. NVIDIA’s expertise in programmable GPUs has led to breakthroughs in parallel processing which make supercomputing inexpensive and widely accessible. The Company holds more than 1,600 patents worldwide, including ones covering designs and insights that are essential to modern computing. For more information, see www.nvidia.com.

Certain statements in this press release including, but not limited to statements as to: the new era for NVIDIA; the value of our visual and parallel computing technologies; the importance of our inventions to the future of personal computing; expanding markets for mobile and cloud computing; licensing payments to NVIDIA; the accounting for and financial impact of the licensing payments to NVIDIA; and the effects of the company’s patents on modern computing are forward-looking statements that are subject to risks and uncertainties that could cause results to be materially different than expectations. Important factors that could cause actual results to differ materially include: any termination of the license agreement between Intel and NVIDIA; global economic conditions; our reliance on third parties to manufacture, assemble, package and test our products; the impact of technological development and competition; development of faster or more efficient technology; design, manufacturing or software defects; changes in consumer preferences or demands; changes in industry standards and interfaces; unexpected loss of performance of our products or technologies when integrated into systems; as well as other factors detailed from time to time in the reports NVIDIA files with the Securities and Exchange Commission, or SEC, including its Form 10-Q for the fiscal period ended October 31, 2010. Copies of reports filed with the SEC are posted on the company’s website and are available from NVIDIA without charge. These forward-looking statements are not guarantees of future performance and speak only as of the date hereof, and, except as required by law, NVIDIA disclaims any obligation to update these forward-looking statements to reflect future events or circumstances.

© 2011 NVIDIA Corporation. All rights reserved. NVIDIA and the NVIDIA logo are trademarks and/or registered trademarks of NVIDIA Corporation in the U.S. and/or other countries. Other company and product names may be trademarks of the respective companies with which they are associated. Features, pricing, availability, and specifications are subject to change without notice.

NVIDIA GPUs TO BE THE INFOTAINMENT CENTERPIECE ACROSS BMW’S NEXT-GENERATION OF CARS

From the 7 Series to the Mini Cooper, NVIDIA Powers BMW State-of-the-Art Graphics, Enabling Focus on Safer, More Enjoyable Driving

BMW of North America and NVIDIA today announced a partnership that puts NVIDIA® GPUs in navigation and vehicle-information systems across all next-generation BMW cars worldwide. NVIDIA GPUs will power BMW’s in-car navigation systems to deliver vivid graphics with detailed terrain models, landmarks and a stunning new interface. NVIDIA processors will be found throughout BMW’s range of models, including the 7-Series, 5-Series, 3-Series, Mini Cooper line and X-Series of sports activity vehicles.

Tesla Motors’ Model S to Feature NVIDIA Tegra Processors
Power-Stingy Tegra to Run All-Electric Sedan’s Infotainment, Navigation, Instrument-Cluster Systems

NVIDIA announced today that NVIDIA® Tegra™ processors will power the infotainment, navigation and instrument-cluster systems in the Tesla Model S, the first sedan built from the ground up as an electric vehicle. Built around the driver, the Model S is the premium sedan, evolved. Its infotainment system features a 17-inch touch-screen center console – the largest display ever in a car – providing vivid 3D graphics. In addition to its unrivaled graphics capability, the Tegra processor provides exceptional energy efficiency, a critically important feature for electric cars. One processor will be used to power the infotainment and navigation systems, and another for the instrument cluster.

NVIDIA GPUs TO BE THE INFOTAINMENT CENTERPIECE ACROSS BMW’S NEXT-GENERATION OF CARS

From the 7 Series to the Mini Cooper, NVIDIA Powers BMW State-of-the-Art Graphics,
Enabling Focus on Safer, More Enjoyable Driving

Las Vegas — CES 2011 — Jan. 4, 2011—BMW of North America and NVIDIA today announced a partnership that puts NVIDIA® GPUs in navigation and vehicle-information systems across all next-generation BMW cars worldwide.

NVIDIA GPUs will power BMW’s in-car navigation systems to deliver vivid graphics with detailed terrain models, landmarks and a stunning new interface. NVIDIA processors will be found throughout BMW’s range of models, including the 7-Series, 5-Series, 3-Series, Mini Cooper line and X-Series of sports activity vehicles.

BMW’s iDrive will feature high resolution visuals, real-time traffic reporting and navigation information. iDrive is the intelligent control concept that makes it intuitively simple to use a BMW’s in-car features. Its ability to clearly show the most relevant details and make anticipatory decisions to assist the driver will allow BMW owners to drive more safely and focus on the joy of driving.

Highlights / Key Facts:
· Powered by NVIDIA GPUs, the BMW iDrive system provides:
o Visually rich, next-generation user interface
o Advanced state-of-the-art graphics for navigation and vehicle-information systems
o High resolution display (1280×600)
o Fast user-interface response time

· At CES 2011, see a sneak preview of the BMW 5-Series, showcasing the very latest graphics technologies at NVIDIA’s outdoor exhibit – Central Plaza booth # CP7.

Quotes:
· “A year ago we had a vision to deliver the most advanced intuitive state-of-the-art navigation system. In our quest for superior graphics performance, no one came close to what NVIDIA brings to the table. Our partnership represents the beginning of an exciting new phase for BMW drivers.”
- Elmar Frickenstein, Executive Vice President Electrics/Electronics and Driving Experience Environment at BMW

· “BMW has built their reputation on creating the ultimate driving experience. They are taking that to an entirely new level with NVIDIA GPUs.”
- Dan Vivoli, Senior Vice President at NVIDIA

Useful Links:
www.bmwusa.com
www.nvidia.com

http://www.nvidia.com/object/tegra_automotive.html

About NVIDIA
NVIDIA (NASDAQ:NVDA
) awakened the world to the power of computer graphics when it invented the GPU in 1999. Since then, it has consistently set new standards in visual computing with breathtaking, interactive graphics available on devices ranging from tablets and portable media players to notebooks and workstations. NVIDIA’s expertise in programmable GPUs has led to breakthroughs in parallel processing which make supercomputing inexpensive and widely accessible. The Company holds more than 1,600 patents worldwide, including ones covering designs and insights that are essential to modern computing. For more information, see www.nvidia.com.

BMW Group In America
BMW of North America, LLC has been present in the United States since 1975. Rolls-Royce Motor Cars NA, LLC began distributing vehicles in 2003. The BMW Group in the United States has grown to include marketing, sales, and financial service organizations for the BMW brand of motor vehicles, including motorcycles, the MINI brand, and the Rolls-Royce brand of Motor Cars; DesignworksUSA, a strategic design consultancy in California; a technology office in Silicon Valley and various other operations throughout the country. BMW Manufacturing Co., LLC in South Carolina is part of BMW Group’s global manufacturing network and is the exclusive manufacturing plant for all X5 and X3 Sports Activity Vehicles and X6 Sports Activity Coupes. The BMW Group sales organization is represented in the U.S. through networks of 338 BMW passenger car centers, 336 BMW Sports Activity Vehicle centers, 143 BMW motorcycle retailers, 100 MINI passenger car dealers, and 31 Rolls-Royce Motor Car dealers. BMW (US) Holding Corp., the BMW Group’s sales headquarters for North America, is located in Woodcliff Lake, New Jersey.

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Tesla Motors’ Model S to Feature NVIDIA Tegra Processors

Power-Stingy Tegra to Run All-Electric Sedan’s Infotainment, Navigation, Instrument-Cluster Systems

Las Vegas — CES 2011 — Jan. 4, 2011—NVIDIA announced today that NVIDIA® Tegra™ processors will power the infotainment, navigation and instrument-cluster systems in the Tesla Model S, the first sedan built from the ground up as an electric vehicle. Built around the driver, the Model S is the premium sedan, evolved. Its infotainment system features a 17-inch touch-screen center console – the largest display ever in a car – providing vivid 3D graphics.

In addition to its unrivaled graphics capability, the Tegra processor provides exceptional energy efficiency, a critically important feature for electric cars. One processor will be used to power the infotainment and navigation systems, and another for the instrument cluster.

The infotainment and navigation systems feature:
17-inch high resolution display, the largest display ever in a car
Responsive touchscreen with a fully intuitive user interface
Connected navigation with live traffic, points of interest and weather
Touchscreen-based climate-control system

The all-digital instrument cluster features:
Ultra high-resolution, driver-friendly 12.3” LCD display
Advanced 3D graphics providing data about the vehicle

CES 2011 attendees will be able to view the Model S outside the Las Vegas Convention Center in the Central Plaza, booth # CP7.

Visit NVIDIA’s booth in South Hall 3, booth # 31431 to learn about how NVIDIA is working with Tesla Motors to bring visual computing to tomorrow’s cars.

Quotes:
· “Model S is designed for performance-oriented efficiency. NVIDIA allows us to use the highest graphics with the lowest energy use.”
- JB Straubel, chief technology officer at Tesla Motors

“The Model S is a modern marvel – a blend of beauty, performance and efficiency. Tegra’s combination of graphics power and energy efficiency make it a perfect match for the Model S.”
- Dan Vivoli, senior vice president at NVIDIA

About Tegra
NVIDIA Tegra is the world’s first mobile superchip, with eight dedicated computing cores. These include the ARM Cortex-A9 CPU, the world’s only ultra-low power NVIDIA GeForce® GPU and the world’s first mobile 1080p HD video processor.

These features enable it to offer extremely realistic 3D graphics and advanced multimedia functionality and premium-quality accelerated user interfaces. Its auto-grade version has undergone specific testing for the automotive market and passed the industry-standard AEC-100 qualification for reliability, adhering to certain operating temperature ranges. It also offers a complete toolset for engineers to quickly build visually-appealing user interfaces.

[SlashGear]

Microsoft Announces Support of System on a Chip Architectures From Intel, AMD, and ARM for Next Version of Windows

LAS VEGAS — Jan. 5, 2011 — Microsoft Corp. today announced at 2011 International CES that the next version of Windows will support System on a Chip (SoC) architectures, including ARM-based systems from partners NVIDIA Corp., Qualcomm Inc. and Texas Instruments Inc. On the x86 architecture, Intel Corporation and AMD continue their work on low-power SoC designs that fully support Windows, including support for native x86 applications. SoC architectures will fuel significant innovation across the hardware spectrum when coupled with the depth and breadth of the Windows platform.

At today’s announcement, Microsoft demonstrated the next version of Windows running on new SoC platforms from Intel running on x86 architecture and from NVIDIA, Qualcomm and Texas Instruments on ARM architecture. The technology demonstration included Windows client support across a range of scenarios, such as hardware-accelerated graphics and media playback, hardware-accelerated Web browsing with the latest Microsoft Internet Explorer, USB device support, printing and other features customers have come to expect from their computing experience. Microsoft Office running natively on ARM also was shown as a demonstration of the full depth and breadth of Windows platform capabilities on ARM architecture.

Windows will continue its industry-leading support across the widest possible set of devices, delivering the breadth and choice that customers demand. Intel and AMD continue to evolve and improve the x86 platforms, including new low-power systems, and advance new designs such as the recently announced 2nd Generation Intel® Core™ processor family and AMD’s Fusion accelerated processing units (APUs). NVIDIA, Qualcomm and Texas Instruments are joining Microsoft to provide ARM-based designs for the first time.

“With today’s announcement, we’re showing the flexibility and resiliency of Windows through the power of software and a commitment to world-class engineering. We continue to evolve Windows to deliver the functionality customers demand across the widest variety of hardware platforms and form factors,” said Steven Sinofsky, president of the Windows and Windows Live Division at Microsoft.

SoC architectures consolidate the major components of a computing device onto a single package of silicon. This consolidation enables smaller, thinner devices while reducing the amount of power required for the device, increasing battery life and making possible always-on and always-connected functionality. With support of SoC in the next version of the Windows client, Microsoft is enabling industry partners to design and deliver the widest range of hardware ever.

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Silicon Partner Quotes

AMD

“We are entering a new era of computing where HD content and 3-D user interfaces are commonplace, from high-end gaming and content creation to video playback and Web browsing. Together, AMD and Microsoft enable these vivid and engaging PC experiences on x86-based devices, ranging from high-resolution, multidisplay desktops to ultrathin notebooks, netbooks and tablets, and we look forward to a new wave of innovation made possible by Windows and AMD Fusion APUs. Windows and AMD Fusion APUs bring to life outstanding Internet experiences, smooth video playback of HD and 3-D content, and acceleration of popular productivity applications.”

Manju Hegde
Corporate Vice President, Fusion Experience Program
AMD (NYSE: AMD)

ARM Holdings plc

“We are excited by today’s announcement, which marks a significant milestone for ARM and the ARM Partnership, and we look forward to working with Microsoft on the next generation of Windows. Windows combined with the scalability of the low-power ARM architecture, the market expertise of ARM silicon partners and the extensive SoC talent within the broad ARM ecosystem will enable innovative platforms to realize the future of computing, ultimately creating new market opportunities and delivering compelling products to consumers.”

Warren East
CEO
ARM

Intel Corporation

“Even conservative predictions show billions of devices coming online in the next few years. One need only look at the creation and rapid growth of the netbook category to grasp what an Intel and Microsoft combination can deliver. While still in the future, what is so exciting is how our two companies will be able to match a tailored, low-powered Windows operating system with future generations of our popular Intel® Atom™ processors to deliver unique, PC-like experiences that offer the best battery life, performance and security around.”

Douglas L. Davis
Vice President, General Manager, Netbook and Tablet Group
Intel

NVIDIA Corp.

“Windows on ARM represents a seismic shift for the computing industry. ARM is already the largest and fastest-growing CPU architecture in the world, and today’s major news of Windows will only accelerate its adoption. We look forward to working with Microsoft to create amazing new computing devices with Windows.”

Jen-Hsun Huang
President and Chief Executive Officer
NVIDIA

Qualcomm Inc.

“Today signals a significant step forward for the future of computing. We at Qualcomm are excited about continuing our relationship with Microsoft to extend the reach of Windows to more Snapdragon-powered devices, offering high-performance mobile solutions with always-on connectivity.”

Rob Chandhok
President, Qualcomm Internet Services
President, Qualcomm Innovation Center Inc.

Texas Instruments (TI)

“Texas Instruments (TI) is pleased to collaborate with Microsoft to make Windows on mobile devices a reality. TI has long believed that low power is the fundamental of fundamentals when it comes to mobility, and we look forward to taking our popular OMAP™ platform, with the ideal balance of high performance and low power, into exciting new mobile computing devices.”

Remi El-Ouazzane
Vice President and General Manager, OMAP Platform Business Unit
TI

The MacBooks that are 13 inches are less is expected to use Sandy Bridge while the higher end MacBook Pros would use graphics processors from AMD. It is unclear whether NVIDIA will remain as a supplier at all for any Apple products in the near future.

[CNET]

In the past week, Intel cancelled their Larrabee GPU project. Larrabee was supposed to be a competitor to nVIDIA and ATi. ATi is a part of AMD Corporation, Intel’s biggest competitor. Intel wants to integrate nVIDIA’s processing units into all of their PC and mobile chips. nVIDIA’s Tegra AXP chips have become very popular in mobile and media devices.

Things between Intel and nVIDIA got really heated when the GPU company announced last month that they were suspending the development of chipsets for new Intel processors. nVIDIA is also working on a System-on-Chip processor optimized for portable Internet devices and is challenging AMD/ATi’s Fusion CPU/GPU hybrid by creating something similar.

Last July, the problems were first reported.  NVIDIA chips were overheating due to weak packaging materials.  Then there was a problem with soldering chips.  The chips are used by Dell, HP, and Apple.  NVIDIA has to change the BIOS settings for laptops to run fans continuously and had to replace PCCs that were failing due to faulty chips.

[via Engadget/The Inquirer]