AMD closes ATI acquisition

AMD has completed its $5.4 billion acquisition of graphics powerhouse ATI.

The chip firm said today that it has officially merged with ATI and the two companies have already begun work on a new project scheduled to reach consumers in late 2008.

In an interview with vnunet.com, AMD marketing architect Hal Speed, said: " Today is the first day that we can actually start implementing and executing."

Code-named Fusion, the new project aims to combine an ATI graphics processor (GPU) on the same piece of silicon as the AMD central processor (CPU). AMD said that this could allow for more energy efficient computers and longer notebook battery life.

A more complete outline of Fusion is scheduled for a December 14th analyst conference.

In the meantime, both companies will continue the projects they had been working on before the acquisition, including ATI's work in stream computing (using the GPU to perform certain tasks that a CPU would normally do.)

Also to continue is AMD's work integrating its Torrenza socket system, which allows co-processors made by other companies to use the same on-board resources as the CPU.

"Torrenza will certainly stick around, it is still fundamental to what we do, " said Speed.

Outside the new projects, both companies will continue their current partnerships with other companies, including AMD's rival chipmaker Intel and graphics-card maker nVidia.

"Our whole philosophy is about providing an open environment for people to operate in," added Speed. "We think competition will help to fuel innovation."