While it probably isn't news to anyone that cares, the merger between CPU maker AMD and graphics chipset maker ATI has been given final approval from competition regulators in the US (home of AMD), Canada (home of ATI) and Germany (where most of AMD's chip fabrication plants are located). As the pieces finish falling in to place, I'm still trying to work out the ramifications of the marriage between the two major market players. It's not an easy task for a faceless government administrator, so I can only build my knowledge based on what scraps of information leak into the public domain from industry insiders.
What is the merger going to do the market place? Prior to the formation of the mega-corp, the CPU and graphics markets were fairly even split: NVIDIA and ATI battled it out in the graphics and motherboard chipset market while Intel and AMD tussled for market share with CPUs. Intel was still market leader but AMD had been steadily eroding that advantage for some time, particularly in the enthusiast market where AMD was considered to have better bang for buck. Both NVIDIA and ATI made chipsets for motherboards that supported both Intel and AMD. In fact, most motherboards for the new AM2 were based on NVIDIA chipsets.
The AMD-ATI merger leaves a number of questions that I don't have the capacity to answer (and would love it if someone could point me towards someone who can) :
- what does this mean for motherboard chipsets? Will NVIDIA still make NForce chipsets for AMD? Will ATI still make chipsets for Intel chips? I hate seeing competition reduced in any market
- what is the future of NVIDIA? Will it need to enter into exclusive agreements with Intel in order to survive, or is it big enough and bad enough to manufacture and develop for both parties?
- related to the above points, one of the dangers of vertical integration is the inclination to favour your own product over a competitors. Even if NVIDIA continues to develop products for AMD, will the development environment remain open?
There are substantial benefits for AMD in the merger. ATI technology is the basis for both the
XBox 360 and the
Nintendo Wii (NVIDIA is supplying the graphics tech for the
Playstation 3). AMD missed out on supplying the CPUs for the Xbox, but now they have an "in" through ATI, as well as a new business partnership with IBM, who have developed the multi-cored PowerPC chips for the Xbox. ATI also have a growing business in mobile graphics technology, particularly for handhelds and mobile phones.
What could be more exciting for the partnership are the future development options. While the current focus in CPUs appears to be multiple cores, it surely can't be too long before the focus switches to integration with other areas. We already have "integrated graphics" on most motherboards (particularly on corporate systems where a graphics card makes no sense cost wise). I would imagine the next logical step is to integrate entire graphics processing units (GPUs) into the chipset as well. Current PCI-e technology is fast, but whenever information is shifted through a PCI bus, there has to be a performance hit of some kind. Moving the GPU on die would reduce that hit (if not eradicate it completely). AMD and ATI are now in the perfect position to begin development on this CPU/GPU integration. In the short term, this is likely to manifest in integrated (but not on-die) solutions like the rumoured
Yokohama platform for notebooks which will see an AMD-ATI collaboration with third party Wi-Fi.
There are flow-on effects from this integration as well. Current high-def DVD set top players are pretty much just a small computer running
Linux in a pretty box that fits in with your home theatre setup. Imagine the potential leap on your competitors if you could be the first one t0 market with an "all-in-one" solution for high-def playback - fast CPU and excellent on-die graphics in one small package. I'm not sure what the heat implications are, but no graphics card means one less fan in the system. Less noise = home theatre goodness.
The one thing I haven't picked up much noise on is the possibilities surrounding
ATI's physics engine development, which will compete with physics processing unit (PPU) solutions such as
Ageia PhysX. The Ageia PPU is a separate PCI card (although a variation of the technology will be used with the PS3) which can be used for physics acceleration, presently lusted after in the gaming arena. The ATI solution involves adding a third graphics card which be transformed into a dedicated PPU. I'm not sure of the physical realities regarding available slots (especially if you're using two cards for a Crossfire set up and want to add a card for PPU work) but I'm sure that if the software can combine all the cards together, then surely the potential to use the technology on-die isn't far away. With multi-cores already in use and quad-core
not far away, the next logical step (to me anyway) is many cores serving different functions. What's to stop a multi-cored CPU to also have additional GPUs and PPUs or other general, programmable PUs waiting to be used (maybe even dynamically?).
The AMD-ATI merger is going to have its problems. Merging two large corporations generally does. However, once the initial teething troubles are put to rest, I think the new entity will be a force to be reckoned with. Integrated GPUs, physics processing, mobile graphics, consumer set top boxes - many fingers in many pies.
It's an exciting time to be alive and watching the hardware game right now.
Interesting links:
DV Doctor: Why did AMD and ATi get wed and where's AMD headed now?
Ars Technica: AMD + ATI: does it add up?
Asymmetric Physics Processing with ATI Crossfire - ATI white paper (pdf)