Now that Intel has cancelled its first Larrabee GPU an old rumor hit the web once more. Cringely wrote on Tuesday that he believes that NVIDIA will eventually be acquired by Intel, not only for their graphics technology but also for the mobile chips.
Intel wants nVIDIA not just for its GPU’s but also for its mobile chips. Mobile is a big part of the future of computing yet Intel in 2006 cancelled its business aimed at handset makers, writing-off $5 billion in the process. Remember that? Despite attempting to back-in to the market again with its upcoming Moorestown post-Atom low-power processors, what Intel would really like are nVidia’s superior Tegra AXP chips aimed at mobile phones and media players. Ironically nVIDIA didn’t even design the Tegra processors, which it bought a couple years ago with Portal Player.
Intel had to do something the minute AMD bought ATi. Now with Larrabee gone Intel has no real choice but to buy another company to remain in contention. The only such company available is nVIDIA.