AMD loses nVidia monopoly

Intel users will be able to use nVidia graphics hardware in the future after a surprise announcement from the two companies.

The deal will be welcomed by users who will be able to use nVidia's nForce platform that had until previously been the preserve of AMD users.

But the announcement will be less well received by other graphics card manufacturers, which will have to share Intel's installed base still further.

"Today's agreements are significant for both companies and, more importantly, represent a win for our mutual customers who now have more choices for enhancing the PC experience," said Louis Burns, Intel vice president and general manager of desktop products.

The new deal is broad ranging, allowing nVidia to license Intel's front side bus technology so that it can build integrated chipsets for motherboards, but also leaving the door open for co-operation on other fronts.

Nvidia is keen to get into the integrated graphics market, which Intel currently dominates.

The deal could have ramifications for Intel's plans to build chipsets for the next generation of home entertainment PCs, which will combine TV, video, DVD and hi-fi functionality.

Integrated graphics will be a key component in these systems and the growth of the market will be lucrative for Intel partners.

No time scale has yet been set for the launch of the first products.