Intel and AMD settle antitrust case

THe two firms have agreed to bury the hatchet

AMD and Intel today announced an antitrust settlement that will see Intel pay its arch rival $1.25bn (£755m). The agreement also brings to a close all ongoing legal wrangles between the two firms, including patent disputes.

The truce marks the end of an antitrust case brought by AMD in 2005. The company alleged that Intel was preventing it from doing business by offering financial sweeteners to PC makers. Intel vehemently denied the charges.

In a statement the firms said, "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development."

Under the agreement, both sides will drop any other litigation they have planned. A five-year cross-licensing deal was also announced as part of the settlement.