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AMD, Intel GPU partnership news: two companies merge to take down Nvidia? new GPU rumored to be in development

Nvidia is currently working on the GTX 1080 Ti, which some speculate will be announced at the CES 2017. | GeForce

The reputation that Nvidia has gained may have been what triggered AMD and Intel to partner with each other to create a powerful graphics processing unit (GPU). According to recent news, the two companies are currently working together to defeat Nvidia in the market.

Nvidia has consistently showered the tech enthusiasts with powerful GPUs that gave impressive output. One of its hit products is the GTX 1080, which boasts premium specs for those who do not mind spending a little more for a quality resolution.

The news about Intel and AMD's synergy has been going around for months, but it is only now that concrete evidence has been spotted about the development of the graphics card. On the HardOCP forum, the deal between the two has already been accomplished.

This was revealed by website editor Kyle Bennett, who said that the "licensing deal between AMD and Intel is signed and done for putting AMD GPU tech into Intel's iGPU."

However, both companies are keeping a tight lip about it. In an interview with PCWorld, Bennett further explained the post he published.

"To my understanding, Intel has a team of about ~1,000 engineers working on their forward-looking iGPU technology," he said. "Basically, that work will be scrapped and that team and their work will be replaced with AMD teams and technology going forward. There are also Apple implications here as well, and this deal is good for Apple assuredly."

While most tech experts believe that the partnership of the two companies is unusual, the history of Nvidia and Intel may apparently be a logical reason why such deal has to happen.

In an article by Forbes, Intel is associated with Nvidia due to its GPU through licensing. The deal has apparently been ended and so Intel may be working with AMD for a new source of GPU IP.

If this is true, then AMD may create a card for Intel and be installed with Radeon chips. This is said to be a win-win situation as the latter will get a stable graphics card while AMD can get more funding from the deal.