Intel Corporation (NASDAQ:INTC) is rumored to be in talks with buying out NVIDIA Corporation (NASDAQ:NVDA). NVIDIA has a market cap of about $8.7 billion and Intel has a market cap of about $109 billion. The only part being worked out right now is the price. nVIDIA is more than likely trying to squeeze more than just a market cap equivalent out of Intel.
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.