Intel and AMD Kiss and Make Up

[qi:gigaom_icon_chip] Intel (s intc) and AMD (s amd) today settled all of their various patent and antitrust disputes, with the top chipmaker paying out $1.25 billion to settle more than two decades of litigation. The two companies will also cross-license their technology over the next five years. The move helps Intel far more than AMD, as Intel is likely to retain its dominant position in the chip market. But Intel will continue to face government antitrust investigations over its pricing practices, and there’s still an intellectual property suit with Nvidia (s nvda) to deal with.
However, Intel can’t really afford to let AMD die because it then becomes a monopoly, and governments love to interfere with monopolies. So in a sense, Intel is propping AMD up only to knock it down again in the competitive market.