Intel is interested in AMDs IGPs embedded into their processors. Most likely Intel is hungry for patent / IP / licenses. The talks are continuing and may not result in a deal, according to people familiar with the negotiations, who asked not to be identified because the process is private.

If the companies agree to terms, Intel may begin incorporating AMD’s graphics cores into its chip designs, according to the people.

Intel may want to acquire the rights to use AMD’s graphics capabilities to boost the performance of its own chips, which have lagged in that area. Many modern personal computer processors include graphics integrated on to the same piece of silicon. The use of high-end visuals also is spreading to new areas of computing such as artificial intelligence.

AMD, which has had much of its market share in processors wiped out by Intel, has been seeking ways to generate cash by licensing some of its chip expertise. It’s one of only two companies, along with Nvidia Corp., that develop the high-end graphics chips used by computer gamers, a smaller but lucrative customer niche that Intel has failed to make a dent in.

“While we aren’t commenting on any of the specifics of our ongoing IP monetization strategy at this time, we are actively pursuing strategic relationships intended to bring our differentiated IP to market in ways that complement our own product plans and expand the installed base for AMD technologies” said AMD spokesman Drew Prairie. He decline to elaborate.

An Intel representative said the company doesn’t comment on rumour or speculation.

Cooperation between the two comes after more than 45 years of enmity. AMD was created in 1969, a year after Intel, to act as a second-source for Intel designed parts. While it’s survived to be the only other remaining source of personal computer processors after other manufacturers such as Motorola Inc. exited the market, AMD has struggled throughout its history to achieve parity with Intel.

Intel in talks with AMD to license graphics