Nvidia vs. Intel

After competing aggressively and successfully with AMD and VIA, Intel are now aligning their sights on Nvidia by challenging Nvidia's core strength: graphics technology.

Most observers agree that the graphics processing unit (GPU) is gaining on the central processing unit (CPU) as the single most important piece of silicon inside the PC. "When you start looking at a PC today, the (central) processor means less and less," according to Jim McGregor, an analyst at In-Stat. The GPU is simply becoming a better way for PC makers to differentiate in a landscape dominated by Intel CPUs, he said.

The question is, who is going to be the largest provider of that differentiation and what form will it take? The pressure on Nvidia--expressed by Huang on Thursday at an analyst meeting--is understandable, as the company seeks to fend off both Intel and AMD, who are increasingly focused on graphics, said McGregor. "Nvidia faces serious challenges. One of their big customers (AMD) went out and acquired a competitor (ATI) and then (you have) Intel saying we're going into your territory." That has put Nvidia on edge. Intel, not surprisingly, is the biggest threat.

Interestingly Nvidia is teaming up with VIA and jointly developing a platform based on VIA's Isaiah chipset:

...to effectively do battle with a circa-2009 Intel that excels in both central and graphics processing and AMD-ATI, Nvidia must seek new partners. It is turning to one of the only other--aside from Intel and AMD--x86 processor suppliers to build an alternative PC platform. Billed as "The World's Most Affordable Vista Premium PC," the sub-$45 processing platform will combine Via's Isaiah processor with an integrated Nvidia graphics chipset.

So, let the games begin....

(Article: Nvidia does battle with Intel, Moore's Law)