And never mind that Huang is about to bet a big part of Nvidia's future on a hotshot new chipset, the Nforce--without being able to sell it to makers of the latest Intel-based PCs that by next year may have 80% of the entire market. Huang, bolstered by a grim resolve to maintain the company's 38% gross profit margins, balked at paying Intel for a license to let the Nforce work with the Pentium 4 microprocessor. He felt that Intel was demanding too much; such license fees run an estimated $5 on each $20 chipset. Nvidia's rivals ATI Technologies, Acer Laboratories and others paid up and could outrace Nvidia in next-generation PC graphics.
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That bravado hasn't worked on Intel. "The royalty they are charging others was too rich for our blood," Huang says. He hopes to strike a deal but insists that Intel respect the intellectual-property value of Nforce. "I know that one of these days they're going to see that they ought not to be afraid of us," he says. Intel, afraid? It's a fantasy worthy of a videogame.
http://www.forbes.com/global/2002/0415/032.html