Sources close to Intel told The Register today that if S3 had squeezed harder last year, it could have forced Intel to back down on future technologies. S3 has bounced back this year on the technology and sales front with its Savage 4 3D acceleration chipset. But last year was a different story. Our sources close said: "S3 was in a parlous state because its strategy on the graphics front was not good. The cash flow situation was not good either but it had very good patents it bought in an auction, including some from Exponential." Intel needed those and so in return for some investment, cross licensed the patents, the source continued. But competitor AMD was unaware of S3's former plight. If it had known, said an AMD executive who did not wish to be named today, it would have ensured S3 could continue, unabashed. ®