Nvidia has pulled a quite an interesting move by announcing that it will be begin to license its GPU technologies to other companies as well as continue to make chips themselves. Nvidia expects that this will help the company to capitalize on the industry shift to tablets and smartphones and push Nvidia into more products.

During Reuters Global Technology Summit held in San Francisco, Nvidia's CEO Jen-Husn Huang noted that it is now quite obvious that the industry is changing and Nvidia will expand its business model to serve markets that they simply can't serve by selling chips alone. He added that Nvidia wants to en gage customers who do not like to buy chips but rather create their own thanks to their capacity, creativity and the scale to build their own, thus directly referring to likes of Samsung and Apple.

Nvidia will kick off its licensing program with the Kepler architecture, same one that is behind the next-generation Tegra Logan SoC. Nvidia hopes and believes that revenue from licensing will fall far behind chip sales but will have an impact on gross margins since the company will get royalties from channels that it does not currently service.

This is surely an interesting move from Nvidia and definitely is a turning point for the company considering that Geforce GPU part of its Tegra SoC is what actually differentiated it from the competition.

Source: Nvidia.com.