Nvidia may be preparing to compete against Intel and AMD in the CPU market, after reports emerged that the company had been in negotiations with Taiwanese vendor VIA to acquire its processor division.
According to Digitimes, the firms had discussed three possible options including a strategic purchase of just its processor division. The other options were a strategic alliance between the companies and the complete purchase of VIA by Nvidia.
The deal fell through according to sources, who cited the high price VIA was asking for with the company telling Chinese-language media that it had no intention of selling its x86 or chipset divisions as they were key to the firm.
Sources speaking to the Chinese-language media said that they believe Nvidia may make another offer for the company, suggesting continued losses at VIA may force the firm to lower its asking price.
Nvidia stated that it does not comment on market rumours.