Reading around this.... Nvidia in the settlement just gave Intel access to the GPU patent portfolio, and got what exactly in return? No x86 license, and if it's simply a "continuation of current arrangements" it doesn't include the newer chipsets. So how is this a remotely good settlement for nVidia?
Nvidia is developing its own ARM CPU and is bound to hit Intel's patents sooner or later. They probably love the cash, too.
We won't be seeing Nvidia GPUs in Intel's CPUs, so don't get your hopes up.
Nvidia had a licence for all frontside bus cpus, but new Intel chips don't use that anymore. That means the licence would be completely useless. I have got no idea how much Nvidia had payed before, but Intel most likely agreed to the payment because they do not like to spend lots of time with a court case which would lead to a fine, because they have to offer a licence to 3rd parties for that. As the new chips have got integrated gpus basically the time is over for those Nv solutions. Even Apple will use Intel onchip solutions later this year. The only way to get rid of that x86 cpu case is to sell ARM cores combined with a powerful gfx core. Those Tegra (2) chips are definitely interesting - especially since you could use em to produce now Android tablets with hdmi output and Flash support. Android 3 will definitely improve sales of ARM based solutions and Nv has got a nice chip for that. Of course it will still take some time till dedicated gfx chips are superseeded by onchip solutions, so they could still sell those too - but that will most likely be not always the case. Maybe 10 or 20 y later nobody pays a penny for those...
I'd say Intel should buy nVidia...just like AMD bought ATI
There have been rumors over the last few years of Nvidia possibly looking to buy out VIA. If they did then they would have some patents to leverage a cross-license agreement with Intel and probably get the x86 license. I don't know if those rumors have any weight to them, but it would make for an interesting strategy on Nvidia's part.