CPU maker AMD unveiled two big moves in its fight against rival Intel. First it announced the purchase of graphics chip maker ATI Technologies Inc. for $5.4-billion (U.S.) in cash-and-stock. AMD stated that it intends to keep ATI’s extensive R&D operations in Canada while hoping that it can do a better job of promoting ATI’s technical than its current management. Prior to the takeover ATI was trading at a discount relative to rival Nvidia Corp. that was seen to execute its business strategy better.
AMD hopes that it will be able to combine ATI’s graphics chips and motherboard chipsets with its processors - including possibly on the same die.
ExtremeTech notes that this merger leaves Nvidia as the last independent supplier of graphics chips for the PC, compared to it claims as many as 56 companies working on developing 3D graphics chips for the PC back in 1998.
On a more reactive note, AMD slashed the price of its Athlon 64, X2 and FX processor lines in an attempt to compete with Intel’s Core 2 Duo platform. One massive cut is the price of the Athlon 64 X2 5000+ falling from $696 to $301.