In a recent announcement, Intel and Creative Technology revealed that they have worked out a $50 million deal, under which Creative Technology will license its GPU chip technology to Intel, and will also sell its UK-based subsidiary, ZiiLabs Limited, to the chip maker.

According to the terms of the agreement between Intel and Chip Technology, a $20 million payment will be made by Intel for licensing rights to ZiiLabs-owned high-performance GPU technology; while the remaining payment of $30 million will go towards Intel's purchase of the assets as well as the engineering resources of ZiiLabs Limited.

The Intel-Creative Technology deal will likely come through by the end of this year; and will pave the way for Creative Technology - which has witnessed 14 successive quarters of loss - to make further advancements in the audio equipment arena, which is the company's core strength area.

The potential purchase of ZiiLabs has apparently been part of Intel's acquisition plans of late, especially since ZiiLabs chiefly focuses on system on chip (SoC) designs for smartphones and tablets.

About the announcement of Creative Technology's deal with Intel, Sim Wong Hoo - CEO of Creative Technology - said: "With this announcement, we gain increased flexibility with the ability to partner with multiple semiconductor companies on advanced design and process technologies, allowing us to mitigate risk while maintaining control over the long-term direction of our product portfolio."