IT giant Intel will pay its closest rival AMD a total of $1.25b to put an end to a bitter protracted legal fight.
The two firms have been plunged into the anti-trust and patent dispute since 2005.
"While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes," both groups announced.
Now AMD and Intel have signed a cross-licensing deal which will last for five years.
Intel has had to adjust its Q4 financial expectations in the wake of the settlement. The firm now expects spending (to hit $4.2 billion, up from $2.9 billion, for the quarter.
Meanwhile, due to the magnitude of the deal and indeed the significant swing of fortune from one company to another, AMD shares surged after the announcement.
“We look forward to healthy competition with the mutual respect one would expect between world class competitors," said AMD CEO Dirk Meyer.
Both firms dominate the vast majority of the computer chip business, though Intel holds a highly dominant 80 per cent share of the market.
Advertisement
Related Stories
- AMD sets out future strategy - it's all about the mainstream Feb 3rd 2012 at 7:32AM
- Intel launches new GPU-less Core i5, Celerons Jan 31st 2012 at 6:48AM
- Ultrabooks to 're-energise' the notebook market Jan 25th 2012 at 8:01AM
- Another Intel record quarter, invests in mobile Jan 20th 2012 at 6:42AM
- Intel launches Performance Tuning warranty for overclockers Jan 19th 2012 at 4:22AM
- Intel says Medfield will run Android better than ARM Jan 18th 2012 at 6:41AM
- AMD's Trinity to compete with Intel's ultrabooks Jan 17th 2012 at 6:27AM
- CES 2012: Razer reveals Project Fiona Jan 11th 2012 at 7:11AM
- CES 2012: Intel enters smartphone arena Jan 11th 2012 at 6:18AM
Follow Follow this article if you would like to receive notifications of updates.
Add a new comment
You need to be logged in to post comments. If you do not have an account then please register.
Comments
0 comments
There are no comments yet, be the first to add one!