After Samsung and Nvidia had their recent legal spat, more light has been shed on the world of GPU patents and licensing. While Intel holds their own wealth of patents, no doubt some concerning GPUs, Nvidia and AMD, being GPU firms, also hold more important patents as well. With Intel’s cross-licensing deal with Nvidia set to expire in Q1 2017, the chip giant is reportedly in negotiations with AMD to strike up a patent deal.
Being one of the big two GPU designers, AMD probably has many important and critical GPU patents. Add in their experience with APUs and iGPUs, there is probably quite a lot there that Intel needs. With the Nvidia deal expiring, Intel probably sees a chance to get a better deal while getting some new patents as well. Approaching AMD also makes sense as being the smaller of the two GPU makers, AMD may be willing to share their patents for less. It’s also a way to inject some cash into AMD and keep it afloat to stave off anti-trust lawsuits.
AMD also has a lot to offer with the upcoming generation. The GPU designer’s GCN architecture is ahead of Nvidia’s when it comes to DX12 and Asynchronous Compute and that could be one area Intel is looking towards. Intel may also be forced into cross-licencing due to the fact with some many patents out there, there have to be some they are violating. The biggest question will be if AMD will consider allowing their more important and revolutionary patents to be licensed.
With the Nvidia deal being worth $66 million a quarter or $264 million a year, AMD has the chance to squeeze out a good amount of cash from Intel. Even though $264 million wouldn’t have been enough to put AMD in the black for 2015, it wouldn’t have hurt to have the extra cash.