Intel said to be seeking strategic partnership with Nvidia

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Intel may raise its stake in Nvidia so that they can form a strategic partnership to oppose the merger of AMD and ATI, according to sources at Taiwan-based motherboard makers. Nvidia shares climbed last week on speculations that it could be acquired by Intel amid the general disbelief that the chipmaking giant could ever do that. It will be interesting to see how Intel and Nvidia handle the AMD/ATI merger, but I’m not sure an acquisition would be the best thing to do this soon after the DAAMIT announcement.

Instead, Intel, which currently holds about 8-10% of Nvidia shares, may seek to form a strategic alliance with Nvidia by raising its stake in the GPU (graphics processing unit) vendor, according to the sources. The partnership would imply that Nvidia decreases product developments for the AMD platform and devotes more efforts to IGP (integrated graphics processor) chipsets for the Intel platform, the sources said. Nvidia is also evaluating the possibility of such a partnership, the sources claimed.

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