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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 206.05-7.8%3:59 PM EST

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From: plantlife7/22/2006 8:17:10 AM
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A Reasoning behind the ATI Deal

As a Co-processor in the 4x4 system, AMD can configure ATI's Graphics Chips and their soon to be released Physics Chips to connect directly to the CPU through cHHT bus.

Nothing could touch this platform in Gaming, or in other configurations. I am wondering if even the Chipset could be a Co-processor.

At first glance, this looks like a horrible move, but we know the AMD Board is too smart to make such a deal without a compelling reason.

It is entirely possible that ATI and/or Nvidea refused to redesign their chips to be Co-processors, so AMD was forced with a choice of building their own, or discarding what looks like an overwhelming strategy
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