What's New: AMD Buys ATI For $5.4 billion

AMD will purchase graphics chip vendor ATI for about $5.4 billion in cash and stock. The purchase will make AMD one of the largest graphics chip vendors, just months before Windows Vista is set to launch with its high graphics chip requirements. Intel continues to push its graphics chips integrated into PC motherboards (something ITS has generally avoided for performance reasons and the reduction in system memory), but AMD says they expect that side of ATI's business to dwindle. Instead AMD plans to expand into the mobile computing and consumer electronics markets starting in 2008, when AMD plans to begin offering a variety of new, combined CPU and graphics solutions for both PC and non-PC solutions.

Monday, Jul 24, 2006 10:45 am CDT

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