Nvidia says Intel pact applies to next-gen

NEW YORK (Reuters) - Graphics chipmaker Nvidia Corp said on Wednesday that a 2004 agreement with Intel Corp allowed it to make chip sets that work with Intel''s next-generation microprocessors.

Intel had alleged in court on Monday that the four-year-old chip set license agreement between the two companies did not extend to its next-generation Nehalem products, Nvidia said in a statement.

"We are confident that our license, as negotiated, applies," Nvidia Chief Executive Jen-Hsun Huang said in the statement.

Under the 2004 agreement, Intel let Nvidia make chip sets that connect Intel microprocessors to other parts of a personal computer.

Nvidia''s Ion technology, for instance, enables a two-chip PC architecture for Intel processors, allowing better performance, the company said.

Nvidia chip sets currently being shipped are not affected by Intel''s filing, Nvidia said.

(Reporting by Anupreeta Das; Editing by Lisa Von Ahn)