Why Intel will "Never" Buy Nvidia

Posted 12/10/2009 at 9:45am | by Paul Lilly

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Maybe you've been hearing reports that Intel is interested in buying Nvidia, but if you have, don't believe them, says market research firm Jon Peddie Research (JPR), who dismissed the rumblings as "naive speculation." And that whole Larrabee thing?

"Larrabee isn't dead. Wishful thinking won't make Intel or its ambitions go away," JPR said. "The company has, and continues to make, huge investments in the graphics technology and space."

JPR went on to say that as far as Intel's viewpoint goes, esoteric architectures like the GPU ASIC will fade away, unlike the x86 architecture, which as been around for the past 40 years. Besides, says JPR, there exists too many cultural differences between Intel and Nvidia for the two companies to blend together.

"It's unlikely, regardless of how big Intel's checkbook is, that the two companies could ever agree on the price," JPR added. "The Nvidia BOD and shareholders of Nvidia would never approve a friendly acquisition by Intel, and Nvidia has a multi-voting technique that would delay any hostile attempt for over a year."

On top of a that, JPR says "Intel doesn't think it needs Nvidia."