Intel will pay $1.5 billon rival chipmaker Nvidia to settle all outstanding legal disputes between them.

Under the terms of the deal, Intel will pay $1.5 billon in five annual installments starting 18th of January.

Intel signed a new 6-year deal with Nvidia for the cross-licensing of their technologies. Nvidia’s complete range of patents will be accessible to Intel, while Nvidia will preserve right to use Intel patents, excluding proprietary processors, certain chipsets and flash memory.

Separately, Intel signed a 5-year cross-licensing agreement with AMD and paid it $1.25 billion to settle outstanding disputes.

Intel’s chips are found in nearly 80 per cent of PCs in the world, and its settlements with Nvidia end its rival’s complaints that Intel has been using its supremacy to exclude rivals from the market.

Recently, Intel launched new processors that combine graphics and media engines with the main processor. The new technology is expected to hack the need for separate graphics chips produced by Nvidia.

Share in Nvidia jumped 5.7 per cent to $21.80 in after-hours trading.