The relationship between Apple and NVIDIA, the manufacturer of the graphics chips in most Macs for quite some time now, appears to be souring at an exponential rate. Electronista reports that negotiations between the two companies to continue their business relationship are not going well, with Apple accusing NVIDIA of being arrogant. According to a source with access to NVIDIA, Apple is on track to cut NVIDIA off as a graphics chip provider for the next 3-4 years.

If the two companies cannot reach an agreement, NVIDIA would continue to provide chips for models that currently use NVIDIA, but Apple would be likely to drop NVIDIA chipsets in updates to their product line, particularly in iMacs and MacBooks currently based on Intel's Nehalem architecture.

A significant factor in the disagreement is the way NVIDIA handled the graphics failures of MacBook Pros carrying the GeForce 8600M video chipset, which had a tendency to overheat and eventually stop working. Apple had to extend the warranty on MBP models graphics chips sold from June 2007 to October 2008 to three years (the Apple support page on this issue can be found here).

The relationship between Intel and NVIDIA hasn't exactly helped, either. Both businesses filed opposing lawsuits over NVIDIA's license to make mainboard chipsets with their own internal memory controllers. If Intel wins, NVIDIA could not make another chipset like its GeForce 9400M model that supports Core i7 processors, and would oust NVIDIA from Macs by exclusion.

Neither Apple nor NVIDIA have publicly spoken on the matter so far. Apple does have a history of severing relationships almost without warning, as they dropped ATI (now AMD) from Power Mac G4s after the company revealed Apple's plans ahead of a Macworld keynote address. However, if Apple does indeed drop NVIDIA, they may have to return to AMD in order to maintain their current graphics standard.

TUAW is hearing from various sources that new MacBooks are right around the corner, and that they might even have some extra Nvidia power in them. A source tells us that Nvidia is showing off new MacBooks to their employees, and word is going around that the new versions will be released as soon as October 14th.

Of course these are all rumors, so don't be surprised if 10/14 comes around and there are no changes in Apple's lineup. But the rumors have been adding up -- we've heard for a while that MacBooks were due for a refresh, and we're not the only ones hearing about Nvidia units being included as well. Not to mention that Apple has apparently finally realized that gaming is worth embracing, and the next logical step for a gaming upgrade would be the MBP line.

Don't put money on it, but if you're planning to buy a MacBook and can wait another few weeks, you might want to wait and see. I'm getting close to being in the market for a new laptop, and as a gamer, I'd love to see a MacBook with a little more graphical oomph to it.

This week's TUAW Desktop hails from Flickr user form953, who has managed to turn both Dashboard and the Dock more or less Inside Out. The iStat pro widget is running in Development Mode, which is what allows it to live on the Desktop, separate from the Dashboard. I'm not entirely sure how form953 managed to pin the Dock underneath the menubar, however; I've seen that option in one utility or another, but have never used it so I'm blanking on which apps allow for this. Here's a list of what else form953 has going on here, thankfully provided along with this shot at Flickr:

• wallpaper and Disctop from mekentosj.com
  
• iStat pro widget running in developer mode
  
• Bytecontroller
  
• SMARTReporter
  
• Spirited Away
  
• VirtueDesktops (which, sadly, is no longer being developed due to Leopard's upcoming Spaces feature)
  
• Google Desktop for Mac
  
• Chip Set icons

If you'd like to see your unique, functional or otherwise interesting desktop featured in our TUAW Desktops of the Week series, check out past featured desktops as well as the original post for the rules and to get an idea of what we're looking for. Then, upload your desktop screenshot to our TUAW Desktops Flickr group. We'll feature one or more desktops each weekend, giving credit to the desktop owner, wallpaper creator and any apps featured in the screenshot (if available). Keep those desktops rolling in!