August 2, 2006
This article was contributed by Stacey Quandt
On July 24, 2006, AMD and ATI announced they will merge in order to
combine AMD's strength in microprocessor technology with ATI's
proficiency in graphics, chipsets and consumer electronics. The
transaction, valued at US $5.4 billion, is expected to close toward the end
of 2006,
subject to approval by ATI shareholders, regulatory
approvals and other customary closing conditions. At first blush, the
obvious implications of the merger focus on the market pressure this
combination
will place on Nvidia and Intel, and how it will enable AMD and ATI to
accelerate innovation in the commercial, consumer electronics and mobile
computing segments.
In the near term, the merger enables the companies to create an
integrated graphics business and deliver core logic chipsets to compete
with Intel in the consumer market. In the long-term, the combined company
should be well positioned to develop
coprocessor-based media and physics acceleration technologies which will enable
advances in chips beyond today's cores.
If viewed from an open source perspective, some additional questions surface:
1) Will AMD, which has cultivated a strong relationship with the Linux
community, work with ATI to release open source drivers - including
supporting suspend/resume on laptops?; and 2) How will a combined AMD and
ATI influence the growth of the Linux desktop and handheld market?
There will probably be no comments from the companies until after the sale has closed. But
the potential benefits to the open source community resulting from a combined AMD
and ATI are intriguing. In this context, it is worth remembering that
Intel - AMD's primary competitor - has been working to provide free
Linux drivers for its video chipsets.
It would be absurd to believe that open source
graphics drivers and advances in Linux laptops and handheld devices are
the motivation behind this merger. But the opportunity for AMD to prosper in the Linux market
from embedded systems to servers, coupled with AMD's long-term goal of
beating Intel to market, makes the release of open source drivers
possible as a tactical outcome of a larger strategic vision. Any
augmentation of AMD's Linux and open source strategies will most likely
be revealed subsequent to the merger, so look for possible changes in
early 2007.
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