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FPSLabs Home: AMD buys ATI for $5.4 billion

By: Oscar Meade - Published July 24, 2006 at 12:31 PM EDT - Writer Archive
It's True! AMD acquires ATI to "create processing powerhouse" with a promise of unified CPU/GPU processors in the future.
"AMD and ATI today announced plans to join forces in a transaction valued at approximately $5.4 billion. The combination will create a processing powerhouse by bringing AMD’s technology leadership in microprocessors together with ATI’s strengths in graphics, chipsets and consumer electronics. The result: A new and more formidable company, determined to drive growth, innovation and choice for its customers, particularly in the commercial and mobile computing segments and in the rapidly-growing consumer electronics market. Combining technologies, people, and complementary strengths, AMD plans to deliver in 2007 customer-centric platforms for the benefit of customers who want to collaborate in the development of differentiated solutions."

You've read the rumors flying around on the internet for weeks and weeks. AMD has now set a semiconductor acquisition record with its purchase of ATI. This is an earth-shattering announcement in the technology industry that has the potential to either make or break AMD and truly capture an even greater level of the marketplace against Intel. With this announcement, Intel has revoked/not renewed ATI's chipset license on Intel's own platform.

AMD has also announced that they look forward to the "opportunity to integrate CPU and GPU onto the same [die]." This fits in perfectly with the AMD's Torrenza technology which overnight literally went from dream to future reality. Will these newfangled technologies help AMD cope with Intel's seemingly insurmountable comeback? Only the future will tell...for now AMD and ATI celebrate in their partnered conquest to grow together and shake up the industry, and truly challenge Intel for years to come.

AMD Press Release
DailyTech
TheInq

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