Intel pays AMD $1.25 billion to settle legal battle

Dollar bills flying out of a laptop screen

Intel and AMD have settled their legal battle, with AMD winning a $1.25 billion payout from its larger rival.

AMD had accused Intel of using nasty tactics to block it out of markets. Intel has already been fined 1 billion by the EU for preventing manufacturers from using AMD products.

"Under terms of the agreement, AMD and Intel obtain patent rights from a new 5-year cross licence agreement, Intel and AMD will give up any claims of breach from the previous license agreement, and Intel will pay AMD $1.25 billion," a statement from the firms read.

"Intel has also agreed to abide by a set of business practice provisions," it continued.

AMD will then drop all legal cases and regulatory complaints against Intel, including cases in the US and Japan.

In a joint statement, the newly-friendly firms said: "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development."