Analyst Expects Nvidia to Acquire AMD Despite of Chances to Lose x86 License

Doug Friedman, an analyst with American Technology Research, said that graphics chip maker Nvidia Corp. could well acquire x86 microprocessor maker Advanced Micro Devices in order to "re-architect it". The acquisition is considered to be useful due to the fact that roadmaps of AMD and Intel Corp. threat Nvidia. The only problem for the graphics giant is that AMD's x86 license is a non-transferable one... Indeed, shareholders of AMD are hardly pleased with the company's performance in the recent quarters as well as issues with the launch of quad-core microprocessors and the release of DirectX 10 graphics processing units. Nevertheless, late last year AMD managed to secure $622 million from Mubadala Development Company, which means that there are those who believe in AMD. But despite of the problems that AMD has had, its roadmap of integration graphics cores into central processing units (CPUs) threats Nvidia: not only AMD increases its market share on the market of graphics adapters, but it transforms graphics solutions into commodity, which may potentially affect Nvidia's revenues going forward.

Nvidia's SLI May Disappear, or SLI Policy May Be Changed If Nvidia Fails to License Intel's Next-Gen Processor Bus
by Anton Shilov
2/22/2008
If rumours about Nvidia's inability to get a license to produce Intel Common Serial Interface (CSI) bus compatible chipsets are correct, its multi-GPU technology SLI may either disappear from the market or Nvidia may change its SLI licensing policy and open up the technology for others... In order to enable SLI technology for its Intel Dual Socket Extreme Desktop Platform (DSEDP) Intel had to install certain PCI Express hub chips from Nvidia onto its Intel Desktop Board D5400XS mainboard... ATI CrossFire and CrossFire X multi-GPU technologies that allow several ATI Radeon graphics cards to work in cooperation can be enabled on any third-party chipset, but not Nvidia's... Currently Intel's CPUs utilize AGTL+ quad-pumped processor system bus and various chipset designers have license to produce compatible chipsets. However, later this year Intel plans to introduce new so-called Common Serial Interface (CSI) bus for processors, which is similar to AMD's HyperTransport, but also requires a license. According to a news-story by The Inquirer web-site, Intel "is refusing to provide Nvidia with a vital piece of CSI technology", which may indicate that Nvidia loses ability to produce Intel-compatible chipsets late in 2008... With no in-house developed Intel-compatible chipsets, Nvidia will have to either allow SLI technology to function on third-party chipsets, or its multi-GPU technology will only function on chipsets supporting microprocessors by AMD... Nvidia... may focus on creating graphics cards with several GPUs on them, which do not require any special chipsets.

IBM Could Take Over Advanced Micro Devices: Rumours Resurrect
by Anton Shilov
1/23/2008
The speculation about possible takeover of the world's second largest supplier of x86 microprocessors by the world's leading IT conglomerate resurrected in a Financial Times article provided by analysts from MergerMarket.com web-site. Despite of the fact that IBM has been withdrawing from any kind of manufacturing for years, the observers believe that it still makes sense for IBM to acquire Advanced Micro Devices, which has not reported profits for many quarters... all three new-generation game consoles - Microsoft Xbox 360, Nintendo Wii and Sony PlayStation 3 - either have an IBM-designed PowerPC-derivative inside (Wii, Xbox 360), or sport IBM co-designed chip (PS3)... Advanced Micro Devices may not only enable IBM with comprehensive lineup of x86 central processing units for personal computers, but may also provide a product roadmap for both well-developed and developing markets. More importantly, after the acquisition of ATI Technologies the CPU maker gained access to graphics technologies as well as stream computing initiatives... While the potential deal between AMD and IBM has numerous pros and cons, it should be noted that in case IBM acquires AMD, it will need to compete directly with Intel Corp., Nvidia Corp., Sun Microsystems and, perhaps, all the companies who make servers based on AMD processors today and rival IBM's machines, including HP and Dell.

>>...The question is why Nvidia would want the tsuris of trying to buy AMD. AMD, after all, owns ATI, a rival graphics chip maker which Nvidia was slowly grinding into powder before AMD swooped for it...<<

Wow... so this would leave us with only one important video manufacturer and one compatible processor company - that’s not unlike Hillary Clinton’s theory of lowering costs with a single provider - in the real world monopolies lower competition and increase prices while stifling innovation.

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