5 replies to this topic 1 votes

[Hurmoth]

Forbes said:

Chip maker Advanced Micro Devices Inc. invested $7.5 million in Transmeta Corp., which licenses microprocessor intellectual property, the companies said Friday.

In exchange for its investment, AMD will receive Transmeta preferred stock, Transmeta said. The company did not release the number of shares AMD will gain.

In a statement issued by Transmeta, AMD president and chief operating officer Dirk Meyer said the investment will aid Transmeta's technology development efforts and AMD's endeavors to leverage the company's energy-efficient technologies.

News Source: Forbes

[NienorGT]

Energy Efficient... Cool, but why I have the feeling that AMD is going to do only low end CPU in the future? Fusion... now that...

[+chconline]

Maybe AMD should start worrying about making sellable, profitable performance CPUs than worrying about investing in other companies...

[Hurmoth]

chconline, on Jul 6 2007, 13:46, said:

Maybe AMD should start worrying about making sellable, profitable performance CPUs than worrying about investing in other companies...

By investing in this company they'll most likely get rights to certain technologies and will be able to integrate those technologies into their processors. This benefits both companies and the consumer then.

[L3thal]

Hurmoth, on Jul 6 2007, 13:57, said:

By investing in this company they'll most likely get rights to certain technologies and will be able to integrate those technologies into their processors. This benefits both companies and the consumer then.

That's what I was thinking. Intel loves to invest money on small companies as well.

[Hurmoth]

L3thal, on Jul 6 2007, 18:55, said:

That's what I was thinking. Intel loves to invest money on small companies as well.

The one thing I find interesting is that this company, Transmeta, is currently in the middle of a lawsuit against Intel for using its technology in the Pentium 3, 4 and Core & Core 2 Duo chips. I have to wonder if this was more of a move on AMD's part to help with plantiff fees for Transmeta. Obviously AMD can't just hand over $7.5 million, so they buy that much in stock to help litigation costs.