Intel and Nvidia's Secret War
Intel’s Snyder downplayed reports of friction. At the end of the day, both companies are constantly cooperating on platforms such as the Skulltrail platform that supports CrossFire and SLI, he said. He admitted that hackles were raised at Nvidia when a contract employee at a tradeshow said in an interview that discrete graphics would “probably not” be needed eventually, but that’s not Intel’s official position.
“We completely expect discrete high-end graphics to be around for the foreseeable future,” Snyder said. If you are into video encoding and CPU centric tasks, spend your cash on a quad-core Intel CPU, Snyder said. If you’re a hardcore gamer, by all means, spend your ducats on a faster GPU. If you’re a storage pack rat, save on the CPU and GPU and buy big hard drives, he said.
Nvidia officials also seemed to be ratcheting back the hot talk and said that to describe the situation as World War III is sensationalizing it.
“We don’t hate Intel,” said Nvidia spokesman Brian Burke. “We think Intel is a great company. They are experts in the x86 architecture and they’re the leader in CPUs.” But without missing a beat Burke added: “but they’re not experts in graphics and they’re not the leaders in graphics.”
Which is ultimately what may be the issue here. Beyond SLI, and nForce and Nehalem, Intel’s push into graphics with its Larrabee project has made the stakes much higher for Nvidia.
Nvidia also feels that it was no low-level Intel drone making the statement about discrete graphics going away – it was clearly a shot across the bow. “When they attack us and say things like discrete graphics are going away, we defend ourselves,” Burke said. “When a big company like Intel starts saying something, people are going to believe it.”
Some are. One PC vendor who spoke to Maximum PC said from what they’ve seen, Larrabee will be a very competitive GPU part and Nvidia has good cause to be concerned. And despite the brand affinity that Nvidia has with gamers now, gamers and enthusiasts flock to where the price-to-performance ratio is best. That may be Nvidia now, but it may be Intel tomorrow, the OEM said. Still, other PC vendors Maximum PC spoke to believe that Nvidia’s brand is worth as much or more than Intel right now. PC gamers may very well decide to pass up Nehalem for an older Penryn if that’s the only way they can get SLI.
Burke said Nvidia isn’t sweating bullets about graphics competition from Intel. The same was said a decade ago when Intel got into the discrete graphics market.
“(Intel has) done this before with i740. Did it have money then? Did it have manufacturing then? Did it have engineering then? Was it big bad Intel then?” Burke asked. “They were all those things back then. And we all know how that all turned out.”