Intel Plans to License AMD GPU Technology

[CheeseMan42]

AMD has seen some hard times in recent memory, including more layoffs and a record low market share in the GPU market in the first quarter of 2016. A rumor posted earlier this year at HardOCP indicated that there was growing tension between AMD CEO Lisa Su and the leader of the Radeon Technologies Group (RTG), Raja Koduri. As a result of this, the RTG was reported to be exploring a licensing deal with Intel to provide the GPU component for the Intel iGPU. HardOCP MasterChef Editor Kyle Bennett has now provided an update on the rumor, stating that "The licensing deal between AMD and Intel is signed and done for putting AMD GPU tech into Intel's iGPU." We will have to wait and see what this will mean going forward for the two companies and Intel CPUs with integrated graphics.

Source: HardOCP

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[potatochobit]

every major video game console uses AMD chips, it is ridiculous they can't make a profit.

[Locutus]

every major video game console uses AMD chips, it is ridiculous they can't make a profit.

Most game consoles are sold at a loss.

[AkakmanH]

 

every major video game console uses AMD chips, it is ridiculous they can't make a profit.

Most game consoles are sold at a loss.

 

Sold at a loss - yes....But, what they charge for the games more than makes up for it.

I think it is a good possibility that Intel might improve the AMD line with some innovation.

I stopped using AMD CPU's a long time ago because they did not last for more than a year or two in a business environment

Times are changing. Yes?

[ccokeman]

But AMD does not make anything on the games. That money goes to the studios and devs along with a chunk to the retailer.

[Waco]

I stopped using AMD CPU's a long time ago because they did not last for more than a year or two in a business environment

Times are changing. Yes?

I run them 24/7 at 100% load at work...what problems did you have?

[Guest_Jim_*]

But AMD does not make anything on the games. That money goes to the studios and devs along with a chunk to the retailer.

Right, but AMD is also not selling any consoles. They are selling products to Microsoft and Sony, and then those two are producing the console they may choose to sell at a loss. Just because those two companies are taking a hit (assuming they will make it up with game and peripheral sales as well as service subscriptions) does not mean any company they source from, such as AMD, is also taking a hit.

 

Something else about the topic of AMD not making a profit is that they have been making decisions to change that, from different deals, like a licensing deal with Intel, but they also just restructured a lot of their debt. It makes the company a lot healthier in the long run, but for Q3 it looks like they lost a lot of money. Technically true, since they paid off a lot of debt (and the penalty for early payment) but the new debt is at a lower interest rate, so the net result will save them money. It also gives them some more freedom as the new debt is longer term than what they paid off. (I think the new deal with Global Foundries that let's them go to other fabs also cost them money now and if they exercise that option, but the flexibility to make more product and use potentially superior processes could be quite a boon for them.)

There are reasons why they went from under $3 a share in April to over $10 at last close... I think I might follow this kind of stuff too much, but it can be so interesting as underdog-AMD works to climb. (If anyone looks at the stock price graph, you can see the dip in September when the debt restructuring occurred.)

[AkakmanH]

 

I stopped using AMD CPU's a long time ago because they did not last for more than a year or two in a business environment

Times are changing. Yes?

I run them 24/7 at 100% load at work...what problems did you have?

 

I used to build a lot of business PC's. Only quality MB, Tam, etc. For less expensive builds I used AMD to save clients money. The AMDs would always fail after 12-18 months. Bad luck? Maybe. But I still have Intel builds running after 7-10 years. Oh, cooling was never a factor.

[Waco]

I used to build a lot of business PC's. Only quality MB, Tam, etc. For less expensive builds I used AMD to save clients money. The AMDs would always fail after 12-18 months. Bad luck? Maybe. But I still have Intel builds running after 7-10 years. Oh, cooling was never a factor.

I'm not sure what you were building, but no PC should fail in 12-18 months. I've never had a build not run for years, and I abuse the hell out of the machines I put into production.