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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

User Comments

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I wonder if it'll create any conflict for Intel/ATI users , if so i'm sad. :(
Mike "Australia" Antebi ° Former DPAD Editor in Chief °
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well i'm getting a core 2 duo and an nvidiai card, so im good to go =]
Lucky7 | Mal'Ganis.US.PVP
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I doubt there would be any conflict for Intel users, as that would be a very bad move.
Need a hug? PM me.
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ATI currently has the performance and image quality crown, however the ATi flagship card consumes too much power(twice as much compared to nVidia flagship). AMD specialises in high-performance yet low-power-consumption processors.

If AMD can engineer an ATi GPU just with lower power consumption. they'll win.
o_O
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I see dual-core GPUs being shipped on the horizon.

I wonder what's going to happen with Nvidia's chipset support and the users with Crossfire and an Intel platform. Things are going to be a little interesting for a while.

It's good to see that AMD finally has a chipset that they can call their own.
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amazing, but I would have bought ATI
i hope AMD makes some major ajustments with the ATI cards
cause personally I think they are WAY under par and don't perform all that well.
sensitivity 1.618
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holyyyy crap.
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shizzdaM
"Wake up and Live"
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i'm using intel cpu/ati gpu :(
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Aswome. I am already an AMD/ATi user.
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very interesting!@ :O
http://tllg.net - My URL Shortener!
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wow thats cool
#united5 #soLgaming
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They could of used this money for CPL prizes instead. What a waste ..... :)
Its a piece of cake to bake a pretty cake.
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Good thing I'll be switching from my AMD/nVidia setup to Intel/nVidia setup in like a year or so.
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I thought amd AND ati were sponsoring CPL... which means that the money just went from two major sponsors to one giant sponsor.
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AMD > Intel.
Mug N' Mouse - #team-mnm - www.mugnweb.com
17
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#16 conroe > AMD + ATI

im pretty sure there would be a joint partnership for Intel and NVidia down the track very soon
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good news
Live To Fly Fly To Live
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will ati drop sponsorship with tournaments that had intel as sponsor?
这里是哪? ︻┳═一 I am Hit!
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so what happens to the wsvg sponsorship? two rival sponsors now (intel and ati).
... ...
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Great news, but too bad I'm a nVidia/AMD guy
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i agree #6
I play CS on a toaster

Very cool stuff.

Look at this link from Inq. Looks like this deal was done for long term success to fight against Intel's "micro processors" - sounds like a hybrid CPU/GPU - that will make the current GPU industry extinct...if AMD and Intel have their way. (give or take 5-10 years)

http://www.theinquirer.net/default.aspx?a..
#BITB...the definition of old school.
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#17 ... your sure wrong. That has already been put to rest
Yep.
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wow thats alot of money...
#REVELRY #SQL-GAMING
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I just want to know what this means for Apple. I really hope they don't do anything stupid like switching over to nVidia for their macbooks.
Can I keep you?
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Time to invest in AMD and gtfo of Intel/nVidia.
Nationalism is an infantile disease. It is the measles of mankind. -Einstein
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5.4 billion, you can help poor people
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you could buy one huge rock of crack for that
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Integrated GPU/CPU solutions are not even valid at this point in time. They will run into the same problems they have with having the IMC on chip, except much much worse. With IMC, there were not a whole lot of advancements in memory technology. With the which from DDR to DDR2 AMD had to release the AM2/Socket F processors just to cope with this change. Now thing of the rate in which GPUs have improved, and their uArch over the past 4 years. This solution would work for business/budget PCs, nothing more.

The reasoning behind this move from AMDs standpoint is that they could not make a good chipset for the life of them, and thus could not compete with Intel at a 'platform' level. ATi gives them a quality chipset.

Also #27:

I remember a few months back when Intel stock was around $18 and AMD was at $35. Now Intel stock is at 17.5, guess where AMD is at? If you said 17.3 you would be right. At least AMD is a better buy now ;)

You all need to realize that not a whole lot changes from this. There will still (most likely) be an ATi offering for this round of motherboards, and Intel will be forced to move forward with nVidia or switch their IGP target from low-end/business to mainstream use as well. AMD gains a chipset, ATi loses a huge amount of business. nVidia really comes out on top with a good relationship with AMD for their business platform, and Intel's increased need for a better relationship with NV. They also have the freedom of not being tied to any one company.
Never Knows Best
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Only good will come from this.
OMG it's meesta shin! #next-time
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owned.

but u should have picked up nvida.....
If you are one in a million, there are at least 100 ppl exactly like you in china.
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wow
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whoow, 5.4 billion o.o

but no more AMD+nVidia goodness :(
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AMD would be stupid to exclude Nvidia chipsets from working with their CPU's, its just bad business.

So expect to still be able to run AMD chips on Nvidia motherboards. AMD is still a CPU manufacturer first and foremost, they wont be cutting their legs off just to get in bed with ATI. This is more of a grab at technology than it is to exclude Intel or Nvidia.

Here is a good write up by the Inq, that explains the various positions, and what should come from all of this: http://www.theinquirer.net/default.aspx?a..
Senior Editor - http://www.fpslabs.com
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So So sexy.. I can't wait to see what they can do!
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I've always been AMD + Nvidia because its the right way to go :)

LIke some one siad on previous post, only good things can come from this but seriously... 5.4billion? wtf... ATI ?? why not NVIDIA -_-;
I want Nerd Stars !!!
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wow 5.4 billion lol
buddy me
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#17, there is no love lost between Intel and nVidia. The industry expected Conroe+Crossfire to be the market leaders.... But imagine Intel havint to sell products that support AMD Crossfire LOL
YenkeeNY : "And everyone knows the true meaning of MMORPG - Many Men Online Role Playing Girls"
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big news.
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"The merger also could lock ATI out of the business of supplying graphics chipsets to Intel-based PCs, worth about $90 million a year in revenue. ATI chipsets connect to Intel's processor through what's known as a front side bus, which serves as a highway for transferring data. But AMD, under a different licensing deal with Intel, is not allowed to use that front side bus. "

I hope that doesn't happen.
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not million.. billion.
Marky "atdt" Ochoa, Head of World of Warcraft, Fnatic.com
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im using amd 3200+ and ati 9800 woot!!
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So when is Intel buying Nvidia?
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why ATi ...
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I have AMD and nVidia :D ATI pwns, I use to have it, they are both good graphic companies. I believe this deal was 'caused by the recent CPL sponsorships, and the owner of ATI will NEVER have to set foot in an office building or any working area again. $5.4 Billion + the money he made with ATI in previous years...
Go Read a Book =)

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