What was a rumor yesterday is now true today. Intel has expressed that talks around licensing with Nvidia for Intel’s next-generation processors are not going smooth. This can be a huge hit and concern for the high-end PC gamer as these two companies provide the best technology for gaming when they’re joined at the hip.

According to sources, some desktop vendors who wish to remain anonymous, is that Intel and Nvidia are currently negotiating technology licenses for Nehalem, Intel’s next-generation desktop CPU due out at the end of this year. The bait is that Intel wants to license SLI from Nvidia for its Nehalem chipsets, and if Nvidia won’t, Intel will withhold the license that would enable Nvidia to support Nehalem’s memory controller, and Nehalem, on its own chipsets.

Gamers who demand SLI with a fast Intel processor can still use Nvidia’s NForce 790i chipset, which supports the current generation of Intel Core 2 Extreme chips.

In my opinion both companies have nothing to gain if they become disconnected over this licensing issue. This could put a bad taste in the mouths of many die hard gamers who in turn may move over to AMD, not sure if that would happen in masses.

UPDATE 5/30/08 5:48pm PT - Intel released an additional statement. “We are not seeking any SLI concession from Nvidia in exchange for granting any Nehalem license rights to Nvidia,” the company said. Source cnet.com.