AMD will continue supplying graphics to Intel

Advanced Micro Devices Inc. will continue to supply ATI graphics chips for PCs based on Intel Corp. microprocessors despite the fierce competition between the two companies, AMD's chief technology officer said in an interview. The Intel question loomed large after AMD bought ATI last year. Many believed that AMD would stop supporting Intel microprocessors with the ATI chips, and that Intel would encourage its customers to use its own graphics chips or those from other companies besides AMD.

AMD CTO Phil Hester said at Computex last week that AMD will continue to supply ATI graphics products that work with Intel processors. It makes business sense for AMD to do so and there's still a healthy market for ATI products paired with Intel processors, he said. AMD also believes that the introduction of its Fusion chips in 2009, which will put graphics functions and the microprocessor on a single chip, will not spell the end for discrete graphics components, Hester said. That's good news for gamers and other people who want top-end multimedia performance for work or home applications. Graphics cards with discrete GPUs (graphics processing units) have always delivered far better performance than chips with graphics built in, such as PC chipsets.

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News source: InfoWorld

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Since a video card confirms to an PCI / PCI Express standard, and mother boards adhere to such standards, you would have to "actively" design something not compatible.

If Intel bought Nvidia, they wouldn't "not" make a video card to an amd motherboard design.

AMD is 4 billion in debt and Barcelona is late and has poor yields. They have to sell something to somebody.

I hope they can get things turned around.

AMD has how much of the CPU market? They are a mionority player they don't have the freedom to boycott Intel... They would effectively kill ATI... So why is this news?

AMD makes Chipsets, CPUs, and Video chipsets.
Intel makes Chipsets, CPUs, and Video chipsets.

Why is *AMD* choosing to keep selling something to Intel that Intel already makes?

RAID 0 said,
Because Intel's Video sucks?

For now, but they never really tried for better video performence. Intels integrated gfx are for business users, and the last thing you should be doing at work is playing a video game. That being said, I believe that now with intel going at GPU chip tech full force, they'll have some very good cards a year or so from now.

You need to have rivals, or there's just no business. It's a good idea to supply the market leader anyway, at least it lets you know that they need your company live and kicking.

Money in money, no matter who it comes from. If your rival is paying you for your product, why cut them off. The rival will go get what they need elsewhere.