Digitimes is reporting that nVidia may be in talks with Via for an acquisition, but no deal was made due to the high price named by Via. The war between nVidia, AMD and Intel is heating up and it seems the future holds a single chip for graphics and general purpose computing. It means very soon your computer will have a CPU or a GPU (graphics card), not both like we have in today's computers.
Intel recently talked about Larabee and its future platforms and made it clear that its moving through paces with its development of graphics in the CPU. AMD with ATI acquisition is also moving there and "Fusion", is AMD's plan for CPU+GPU processors. This leaves nVidia alone in its GPU world and it may well be the time when it wants to start making x86 processors as well. Via on the other hand, already has an x86 license and has been making processors for low-power devices. But Via isn't making enough money by selling these processors... This is what encouraged nVidia to make a bid for Via and sure is a good explanation for nVidia to buy Via.
Via also has good processor designs in the form of Isaiah which holds good future in the UMPC world. nVidia might be interested in acquiring the CPU design labs, Centaur because of some good designs that have come from there.
Nvidia and VIA discussed three possible scenarios, including a strategic alliance, acquisition of only VIA's processor division, or the acquisition of the entire company, according to the sources. Though no deal was agreed upon, since VIA continues to see losses, the company is expected to open up negotiations again soon with a lower price, noted the sources.
It'll be an interesting time in the CPU/GPU world in the coming few months... By next year, we would know if "GPU killed the CPUstar or CPU killed the GPUstar"