I was wondering what the benefits of buying ATI would be for AMD. I assume it would be for the GPU technology since the graphics cards themselves only have a marginal profit where CPUs have a much greater markup.
That got me thinking, maybe they are planning on moving the GPU to the CPU? For instance, my 386 required a math coprocessor to run Autocad or 3D Studio. The 486DX and later chips (not 486SX) intergrated the math coprocessor into the CPU. I also remember separate coprocessors for vector and scalar graphics years ago on some platforms, functions that are now performed by the CPU. Intergrating the GPU functions in the CPU would probably speed up many operations since they would not have to cross the bus. Wild speculation on my part, but that would be one reason I could see why AMD wanted the GPU technology. What I find ironic is that I always had much better results with AMD/Nvidia combinations than AMD/ATI.