Major animation firm Dreamworks has decided to use Intel microprocessors for the workstations it uses to create its effects.

The Wall Street Journal said Dreamworks, formerly an AMD shop, will move to Intel chips for the HP workstations it uses.

Dreamworks has apparently decided that the family of chips called Nehalem will suit its needs better than the products AMD promises, and according to the WSJ, is also interested in Intel's 'Larrabee' graphics products.

As part of the deal, Dreamworks gets a team of Intel programmers who will help its own developers get the most out of the products. Intel and Dreamworks won't talk about what the deal is worth in monetary terms.

What's clear is that it's a publicity coup for Intel and a publicity disaster for AMD. The WSJ story is here (sub required). X