Intel Pays $1.25 Billion to Rival

A legal battle between the two largest chip makers in the world is over. Intel agreed Thursday to pay a staggering $1.25 billion to settle a series of lawsuits from rival Advance Micro Devices. AMD had sued Intel in 2005, accusing the company of violating antitrust regulations with tactics like offering discounts to customers who stayed away from AMD products. Intel CEO Paul Otellini told Bloomberg News that the settlement was only a "small multiple" of what it risked losing if a trial went badly. The settlement may not end ongoing investigations by the New York Attorney General's office, the Federal Trade Commission, and the European Union, leaving Intel vulnerable to even more payouts in the future.