ATI buyout by AMD make sense to any of you?

Discussion in 'OT Technology' started by Cthalupa, Jul 24, 2006.

  1. Cthalupa

    Cthalupa New Member

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    http://news.yahoo.com/s/ap/20060724/ap_on_hi_te/amd_acquisition_1

    This move makes absolutely no sense to me. They're alienating nvidia, one of their closest business partners. Yea, sure, they want their own chipset... But the nforce is a very powerful and stable platform, and has served them well in the past.


    About the only thing I can see to gain is a small increase in laptop marketshare, as vendors can get a more complete solution directly from AMD.


    I don't see the benefits as being anywhere close to outweighing the negative sides of alienating a long time partner, and spending that much money to buy the company.
     
  2. captain_winkie

    captain_winkie New Member

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    If they allow ATI to continue making Intel chipsets, they will gain a little market share there based on a percentage of Intel CPUs sold. Particularly in the laptop segment again.

    Yeah, it's reaching.

    I'm curious if nVidia is going to migrate more into the Intel side of things. That would be big trouble for AMD. Then again, nVidia already *KINDA* dropped the ball with that quad-GPU thing they did with Dell & Intel rather than an AMD based machine (which would've been a better choice IMO).
     
  3. Tvan

    Tvan New Member

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    Last edited: Jul 24, 2006
  4. CleanS14

    CleanS14 New Member

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    Of course NVIDIA will become closer to Intel on the biz front. They will now be the only GPU/MCP mfg that is not CPU specific. ATI was cleary at a loss in the market and had no choice but to do this. It is just odd that AMD is willing to put themself through a rebuilding time when Conroe is about to launch and they will not be the CPU of choice on the highend now.

    I'm not too sure how NVIDIA *kinda* dropped the ball with quadSLI and DELL since DELL only sold limited amounts of this product and all of the other boutique high end system builders like Alienware::big grin:ELL, FalconNW, Voodoo, Velocity, Overdrive... sold AMD based systems (and a ton of them to say the least). It was a marketing move and nothing more...
     
  5. P07r0457

    P07r0457 New Member

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    why anyone would not use an INTEL chipset if they have an INTEL CPU is beyond me.
     
  6. Tvan

    Tvan New Member

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    ATi actually has a higher share of the GPU market than Nvidia does (by 2-3%), which is due to their dominance in the mobile market. Don't forget that Nvidia is still competing with Intel in the GPU segment. This means that they may not get as close as you might expect.

    As far as rebuilding, AMD just released AM2, which is really just 939 with DDR2 support. Since they are cutting prices on those chips like crazy to stay competitive (price vs. performance), this is pretty much an ideal time to restructure while pushing development on the planned quad core chips.
     
  7. CleanS14

    CleanS14 New Member

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    Your numbers are based on what is availble to the general public about GPU share TAM. The current trend in mobile shows NVIDIA taking over a ton of business in OEM where the volume is being pushed in ATI's favor. When the numbers reflect this you will see that NVIDIA has the share. They already have more than 80% of the desktop market share and a superior workstation segment offering.

    Actually, I've talked with some Intel folks and they have no real intent on building to pose a threat to companies like NVIDA/ATI in the 2D integrated market. Both NVIDIA and ATI have substantially better integrated offerings onboard already. Intel's plan will be to leverage with partnership or programs to become more complete in their offerings... I don't see how this could work now for AMD/ATI. This all just seems like a plus for NVIDIA... hopefully they can capitalize on the downtime while this merger takes place. Should be an interesting time to say the least.
     

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