Nvidia CEO Rails Against Intel


Nvidia CEO Jen-Hsun Huang has come out publically with his view that the ruling dictating Intel pay out $1.25 billion to AMD doesn’t go far enough and that Intel should see further action taken against it.

What might surprise many is the fact that, while Nvidia commands a fairly healthy 24% of the GPU market, Intel has a vice-grip on 53% of it, with a significant amount of that being served by product lines like Intel’s low-power mobile GMA range, most often seen in netbooks. Nvidia attributes Intels success to the “bundling” tactics that the chip giant employs in getting its hardware into devices.

According to a statement Nvidia gave to Cnet, “Intel’s tactics with Ion have been the most aggressive we’ve seen from a competitor. They have offered the Atom [a total of three chips] for $25, but when the one-chip Atom is used with Ion, it sells for $45. A customer can’t even choose to resell the chipset and use Ion instead. What’s the point of Nvidia getting an Intel bus license if it’s impossible to overcome Intel’s pricing bundles?”

This is argument seems very much to be the tail end of the dispute between Intel and Nvidia that sparked during the first half of this summer, when Nvidia all but accused Intel of lying about low availability of the Atom chipset because it was afraid of what the upcoming Ion chipset would do to its share of the portable GPU market. Now that we’re seeing Ion-based notebooks start to show up for sale, we are seeing people gravitate towards them, but not in the kinds of numbers we imagine Nvidia was hoping.

Still, we imagine that Nvidia’s CEO wanting Intel to be treated more harshly probably won’t do an awful lot to make it happen. Intel’s response to the Nvidia complaint about Atom pricing has been fairly simply to state that, “He’s playing a trick with numbers,” and go on to say that nobody actually pays the $45 price for the Atom processor.

If nothing else, the whole fuss goes some way to explaining the satirical cartoons of Intel that Nvidia has been producing.


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