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I don't get it

So AMD pays $5.4 billion for graphics chipmaker ATI.

Why? It puts AMD into an entirely new business, at a time when I'd have thought the company would concentrate on maintaining its recent competitive successes against Intel.

Meanwhile, Intel is bailing from its distracting foray into communications chips to focus on its core processor business.

What does AMD know that I don't? Plenty. But they'll still have to show me something before I'll regard this as a shrewd move...

Posted by Hiawatha Bray on July 24, 2006 12:35 PM |

Comments

Could it be that the deal will drive a lot of business for ATI rather than AMD, allowing AMD to cash out on the investment?

Even if AMD will loose energy and focus from diversification, now Nvidia has an opponent with a lot of muscle to show. Could this be the reasoning behind AMDs choice?

Posted by: Martin Källström | July 24, 2006 06:24 PM

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