Intel and AMD are fierce competitors in the world of chipmaking, but in recent years they've taken the fight to the courtroom. AMD has sued Intel for antitrust violations (allegations that have been picked up by a number of governments), while Intel fired back by claiming that AMD had violated a licensing agreement for x86 technology. This morning, however, the two companies made a surprise announcement: they've reached an agreement that settles all legal issues between them.

Out of this settlement come four major things for AMD:

1. $1.25 billion in cold, hard cash.
2. Intel will stop doing things that they and AMD agree they shouldn’t be doing.
3. The right to not have to produce x86 CPUs in-house. AMD can go fabless.
4. The right to have their x86 processors fabricated anywhere of AMD’s choosing.