Nvidia is cozying up to Via's Nano processor.

"VIA has a really terrific CPU, the Nano... You put Nano with GeForce together and you put a box around it, you'd think it's a high-performance computer. Everything works: Blu-Ray works, DX10 works, all game works. It's small, it's low cost, consumes very little power. It's unbelievable", Huang said.

At the Nvision trade show on Monday, Nvidia Chief Executive Jen-Hsun Huang added his company will optimize all its software to run with the chip, just as it works with chips from Intel and Advanced Micro Devices (AMD).

The optimization is a huge investment for the company, he said at the San Jose event. But the chip is a terrific CPU, Huang said.

The Nano is designed for desktop and notebook computers. But analysts said it also might be appropriate for consumer products, a market Intel has in its crosshairs.

By Mark Boslet, Editor at Large.