Just like everyone else on the globe, I heard/read/watched Linus telling NVIDIA, in absolutely no uncertain terms, that they were bad Linux citizens. At first I thought Linus was telling them that they were "number one!!!" but sadly this turned out not to be the case.
The topic came up from someone in the audience who was trying to get NVIDIA's Optimus tech working on a Linux notebook. This is a bit of a different bird than NVIDIA's usual discrete GPU market, as this requires co-operation between onboard (or on-die) video adapters, the discrete graphics card and the northbridge to turn off the accelerated GPU when not in use. To my knowledge only Windows 7 drivers can accomplish this, and Linux doesn't quite understand the management architecture to leverage it. The open-source Bumblebee Project appears to be doing a great job of trying to set ACPI & BIOS flags to accomplish the same thing, but the entire effort could be greatly accelerated with NVIDIA's help. While NVIDIA has more-or-less sanctioned the Bumblebee project by releasing installers that work with Bumblebee, they haven't contributed to it directly.
Linux called NVIDIA's lack of Linux support the "exception rather than the rule," and extended that comment to mention that "NVIDIA been one of the worst trouble spots" in kernel support and the "single worst company we've ever dealt with." This of course was punctuated with the infamous line: "so NVIDIA, f**k you." He didn't actually speak in astrisks, I'm just experimenting with censorship.
Linus, of course, just "like[s] being outrageous at times... [because] people who get offended should be offended." It was probably meant to be a thrown gauntlet more than a haymaker, and I can definitely see why. I've been a big advocate of NVIDIA, even with their proprietary stance on GPU drivers and increasingly as the nouveau driver has increased its feature parity. These kind of ACPI hacks however are not the same as keeping tight control over intellectual property tied to their GPU hardware. Given how good drivers are the true value behind discrete graphics cards, I understand not wanting to open-source them to competitors ("Hey AMD! Here's how we did tessalation!"). Controlling power management within the OS kernel is a different matter however - and everyone benefits (including NVIDIA) with broader support. What's the barrier to entry of AMD creating something similar that idled the discrete GPU when no accelerated calls were being made? For that matter, what's to stop Microsoft from coming up with a vendor-agnostic solution that does the same thing? It seems not unlike what OS X Lion is doing right now...
NVIDIA's response basically focused on the fact that they permit Bumblebee to co-exist, their proprietary GPU drivers still offer fantastic performance and support (which they do) and they are one of the largest contributors to Linux on ARM. In short: they don't feel like Optimus Linux support is worth doing right now. However there are signs that even this isn't working well - NVIDIA just lost a quarter million dollar GPU deal due to poor MIPS support.
NVIDIA, this is a great time to step up and contribute the solution to the Linux kernel. Show your competitive edge continues to be broad platform support, otherwise people may meander elsewhere.
Post script: If you're interested in getting a sense of how crazy GPU/graphics driver development is on Linux, read Jasper St. Pierre's post on The Linux Graphics Stack. Terrific outline on the steps a polygon goes through to get to your monitor.