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AMD to buy ATI Technologies

Posted by dinotrac on · 16 comments
New York Times (free registration required); By Andrew Ross Sorkin
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AMD has agreed to buy ATI Technologies for a $5.4 billion in cash and stock.

The purchase, which gets AMD into the market for high-end graphics chipsets, as well as chipsets for the mobile phone market, is expected to make AMD more competitive with Intel.

The deal has special interest to Linux supporters as AMD has long been a favorite of the Linux community while ATI has been a something of a pariah, even though it does offer binary Linux drivers

In light of recent stories about the price-performance superiority of Intel's upcoming Core 2 Duo processors, the following line seems especially interesting:

"A.M.D.'s overall gross profit margins, which fell in the latest quarter to 56.8 percent from 58.5 percent in the prior quarter."

Looks like AMD has a little room to maneuver on price.

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Comments (16)

PR and Mirror

I've got the PR posted over on PCBurn and AMD's website has more information on the merger.

http://www.amd.com/us-en/0,,3715_14197_14198,00.html?redir=g... http://pcburn.com/article.php?sid=1615
http://www.petitiononline.com/atipet/petition.html

i hope this link is not needed anymore in the future ... ;-P ....
Thanks henke54!
This will be a major edge for AMD. Whether or not it will mean better service for Linux is the real question.
Given Microsoft's "Rah, rah, rah, AMD and Windows(r) Vista(r)" comments, I've got some concern about how much influence MS may have on AMD and now by extension ATI.

ATI's support for Linux still seems to be pretty much an afterthought (still no X.org 7.1 support nor any hints on when that might be coming - video-out and other features reportedly not supported well or not at all - developers apparently having a tough time even getting "how to initialize the card's memory" information for development of open-source drivers, etc.). If AMD is SMART, they'll throw some effort into that and Linux support will improve. If, on the other hand, they've "partnered" with MS, ATI's support for Linux may fade to near nothing.
It's a toss up. They might go and offer an Open Source driver, keep the status quo, or turn around and ditch the Linux market.

I don't have too much fear of the last one. The whole reason they've got drivers for Linux is their use on high-end, high-margin CAD/CAM/Design cards.
This looks like the perfect time to take a wait-and-see stance. AMD recently cut prices on CPUs, but I'm going to hold off buying one until I see what they do about ATI.
> The whole reason they've got drivers for Linux is their use on high-end, high-margin CAD/CAM/Design cards.

Yes, but that's a double wammy... Because that's a cash cow, they don't want to release 'any' driver source. If that wern't the case, I think they'd release the source just to get the Linux people off their backs.
Thing is, the first one to open source their graphics drivers would own the Linux market - from embedded to the server. If AMD/AIT would do it then it would be a double whammy for them. The only reason most Linux people by intel is because of their graphics drivers. If AMD would open source the ATI drivers they'd own the Linux graphics *and* CPU market overnight!
> Thing is, the first one to open source their graphics drivers would own the Linux market

I know that, you know that, but neither ATI or NVidia seeme to get it. Either that, or they won't believe that the Linux market's worth it.
I'm taking advantage of their talkative mood :). Let's see if they've got an official response on the question of "what's the deal with ATI drivers and Linux going forward".
Inhibit:

Good luck!

I'm pretty disgusted with both ATI and nVidious.
> an official response

Ok now, are we taking bets on this ?
Heh, I'm putting money on "We respect blah blah community blah customers blah blah brighter tomorrow!"

But hey, they didn't send me a canned response, just a "Good to hear! We'll look into it and get back to you RSN." So either I'm being politely ignored or they're actually trying to come up with an answer.

Either way I'll do an editorial piece on it when I get something, or not.
Ah. Yes. The response is boiler plate. So if I had to take a wild guess I'd say "no freaking clue" is their official stance on what's going to happen :).

I'll try and work up some informed commentary on it when i get the chance to look over all their public speaking.

linus' comment on the merger

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