Negotiating the necessary cross-licenses, though tricky, isn't impossible, Enderle says, citing Microsoft's . It is based on Intel Pentium III technology.

What Nvidia has to watch out for as it considers deals with third-parties is being burned. Take Cyrix's deal with its manufacturer, IBM: It allowed IBM to build and sell the same processor under its own name. Cyrix hoped that would allow its processor to quickly gain volume, resulting in lower manufacturing costs and expanding the market.

IBM had other ideas. "Their sales guys just followed the Cyrix salesguys into the same customers and offered them a better deal," said Brookwood. "[Cyrix] opened itself up to cannibalization."

Don't over-promise and under-deliver

Although no surprise to industry insiders, Nvidia's statement of interest in making CPUs will inevitably raise speculation, and expectations. Nvidia's CEO, Jen-Hsun Huang, also has a .