Intel says “No Soup For You” to Nvidia

A showdown is brewing between NVIDIA, one of the largest makers of gaming graphic chips, and Intel, the largest producer of PC processors, over Intel’s decision to not yet release the specifications of the USB 3.0 technology that it is currently developing. Intel has cited that they have put “gazillions of dollars and bazillions of engineering man-hours” into the project and do not want to prematurely release information that might prove incompatible with hardware down the line.

Here’s the rub: USB 3.0 technology is a high-speed, data connection that will soon come standard in all PCs. In CNet’s words, “It is significant not only because all future PCs and devices will use connectors based on the standard, but also because it will offer 10 times the speed of USB 2.0.”

A reasonable solution to this conflict will eventually have to be agreed upon or else the looming possibility of having two high-end PC gaming groups will become reality: “one with Intel Nehalem processors and AMD-created Crossfire chipsets and the other with AMD processors and NVIDIA SLI chipsets.” Plain and simple, this sort of dispute would be as bad for gamers as the Blu-ray/HD-DVD debacle from this past winter. Better graphics and smoother game play is much more likely, if Intel and NVIDIA get along, rather than trying to play naughty monopolist (leave that to Steve Ballmer).

Is Intel at fault? Not quite. NVIDIA is being a bit hasty, as its recent temper tantrum shows little regard for Intel’s enormous capital investment in funding this neophyte technology. And besides that, Intel’s Nick Knupffer has said “Intel plans to make this spec available early in second half of 2008 with a no-royalty licensing obligation (free sounds cheap to me).” So long as Intel makes good on this promise, Nvidia does not have much right to complain.