AMD, ATI merger rumors analyzed

Ars Technica has put up an interesting analysis of rumors surrounding a possible merger between AMD and ATI. The rumors started with a Forbes article less than two weeks ago and culminated with a news post by HardOCP's Kyle Bennett last Friday quoting a source as saying the deal would take place in just two weeks. Ars also believes the suggested deal is likely, and argues AMD would strongly benefit from a merger with ATI.

Among other things, Ars speculates that an ATI acquisition would fit in quite well with AMD's new co-processor strategy. According to the site, AMD could work with ATI on a GPU that would slot into an additional AM2 socket on a motherboard and communicate via coherent HyperTransport. The GPU would accelerate not only graphics but also game physics and audio thanks to direct communication and load balancing with the CPU. It remains to be seen whether rumors of the merger will be validated, but Ars certainly builds an interesting case.

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