S3 and Nvidia Announce Partnership

In a surprise move, graphics-chip manufacturers S3 and Nvidia, two of the largest in the nation, announced a cross-patent license agreement for a number of their respective intellectual properties. The deal calls for both companies to share their technologies over a seven-year period.

"With this announcement we have reached an agreement that is mutually beneficial to both companies,'' said Nvidia president and CEO Jen-Hsun Huang. "Over the years, S3 has developed and acquired a rich portfolio of technologies in graphics, multimedia, microprocessors, and system logic. Our license agreements with SGI and S3, combined with Nvidia's rich technology patent portfolio, gives us a strong technology base on which to build winning products.''

Currently, it's not known how this deal will affect end users. It is interesting to note, though, that both S3 and Nvidia had outstanding patent-infringement lawsuits against each other - lawsuits that are now dismissed through this agreement.