AMD + ATI... Does This Change Everything?

Easily the biggest announcement of the week is the long-rumored but now-confirmed $5.4 billion merger between #2 CPU maker AMD (which is far behind Intel) and graphics chip maker ATI, which has held a narrow lead as the #1 GPU maker over arch-rival Nvidia for the last few years.

In broad strokes, this means that two of the most complicated parts of your PC might now be produced by a single company, and that could either be a disaster of epic proportions or a huge advance for computing as we know it.

In the short term, little is likely to change much. Drivers for ATI graphics boards may run a bit better on AMD hardware, but that's probably about all we'll see for a few years: Both the AMD and ATI sides of the company (and who knows if the ATI name will survive; I doubt it) will continue their death struggle with rivals Intel and Nvidia. Intel may try to snap up Nvidia for itself.

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