In a move that signals the recent Sandy Bridge announcements are more than just fluff, Intel and NVidia have signed a new licensing agreement  for the next 6 years to the tune of $1.5Billion USD and the end of all current legal disputes.

Under the new agreement, Intel will have continued access to NVIDIA’s full range of patents. In return, NVIDIA will receive an aggregate of $1.5 billion in licensing fees, to be paid in annual installments, and retain use of Intel’s patents, consistent with its existing six-year agreement with Intel. This excludes Intel’s proprietary processors, flash memory and certain chipsets for the Intel platform.

This is the first step towards an Intel+NVidia solution to rival the AMD Fusion, although it will be interesting to see what this does for NVidia’s ARM plans.

via NVIDIA Newsroom.