Let us face it, Nvidia sources - off the record - have been responsible for many a rumor in the past, so this might be as ill founded as it buying Transmeta was. Or IBM buying AMD. Those guys!
Still, as a matter of off the record, let us record it on the record. Because odder things have happened. Like Nvidia buying ULI.
Both ATI (tick: ATYT) and Intel (tick: INTC) declined to comment on the speculative stories afoot at E3 last week. Can't see it myself. µ