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Nvidia may have failed in its covert DAAMIT takeover bid

Taipei Rumours Jen-Hsun seemingly didn't make enough karaoke friends?
Friday, 18 January 2008, 17:50

DURING THE Taipei IDF Fall show last October, we reported on the intensified show floor rumours about a possible Nvidia attempt at a hostile AMD takeover.

Yeah, Nvidia needs a CPU platform if it's not to be squeezed between things worse than "a rock and a hard place" a year from now, when both Intel and AMD (or its buyer) have everything from CPU to platform to GPU, across the board. Buying AMD lock stock and barrel at the time when the Nvidia has several times the market cap advantage is a shortcut for this.

Some of the Taiwanese vendors we've met here highlighted that Jen Hsun Huang's bids to garner support for this bold endeavour in the Ole Taipei late last year failed miserably.

Seemingly, following the old Nvidia tradition, Jen Hsun and his cohorts upset way too many important parties here on a variety of grounds, without compensation in the traditional form of karaoke gatherings and other means of repentance. With that friendship-(un)building track record, even the very mention of the Nvidia-swallows-Daamit idea struck a raw nerve among many of Taiwan IT industry's top exects. And it was not to be.

At least - not to be for now. We don't know what's up in J H Huang's mind - he is a sort of genius who seems to feel able to get out of any quagmire on his own, even when Nvidia itself is partially responsible for that quagmire. That approach is possible, but a bit hard to succeed in this vicious IT industry where friendships and team support are critical, even if fragile and changing with the wind.

And especially when everyone else believes that either IBM or Samsung have quite a bit more chance to get hold of AMD or, in the worst case, its mortal remains - fabs, design teams and all the IP.

In the meantime, Intel keeps very quiet on the Larrabee GPU performance and futures. Well, it doesn't need to talk much in advance, as the CPUs are feeding them well right now. By all means, they got a good team and nearly infinite resources to get the job done by the end of this year - if they do, another headache for a company using that NVDA stock sticker. µ

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Comments
Where to then?

Ok, I kindof like the idea of Nvidia picking up AMD, but wouldn't make them kind of a monopoly? Intel doesn't make aftermarket graphics cards. So, if Nvidia buys AMD, they also buy ATI. Then there really isn't any competition. Also, Nvidia wouldn't be picking up a money maker; they'd be picking up a money hole with issues. Intel can't buy them for the same reasons.

Nvidia currently occupies a sweet spot. I'm not sure it's worth it to leave that spot. They've currently selling chips that people want with both Intel and AMD chips.

The future of electronics may be small, but the workstation, the server, and the gaming machine are far from going anywhere. This means Nvidia has a very stable market without trying to buy a boat (AMD) that spends more power pumping water out of it's hull then it does in moving anywhere.


posted by : Yel, 18 January 2008 Complain about this comment
ARG

DAMMIT, THERE GOES ALL THE EXTRA ALPHABET FUN

posted by : pixie, 18 January 2008 Complain about this comment
first thing's first

There's no way in hell this deal would have met antitrust scrutiny. intel would have greased the palms of enough congressmen and ftc types to kill this thing DOA.

posted by : krln99, 19 January 2008 Complain about this comment
NVIDIA wouldn't be buying a x86 CPU maker ...

Remeber that a buyout of AMD results in a revocation of its x86 licence? NVIDIA would have to sweet-talk Intel into giving it a new licence, and honestly, after all the money Intel spent price-warring AMD into bankruptcy, how likely is that to happen?

posted by : cynic, 19 January 2008 Complain about this comment
Anagrams sound better in Spanish

amd + ati = damita
nvidia = divina 

Damita Divina sounds pretty interesting.

posted by : Perezoso, 19 January 2008 Complain about this comment
I don't think intel even needs to get involved.

Rumors about Larrabee is that it should be nice. I don't think intel really cares at this point even if a merger was to happen. The point is moot. Besides, Losing ATi to nVidia would really screw over AMD.

posted by : Viscountalpha, 19 January 2008 Complain about this comment
N/A

If Nvidia got hold of AMD we would all be royally screwed, what possible good could come from one GPU company controlling the entire market? For consumers I mean.

posted by : AnnoyedDragon, 19 January 2008 Complain about this comment
VIA

Nvidia should buy VIA - if only for the x86 license they inherited from cyrix.

posted by : myne, 20 January 2008 Complain about this comment
A lame article

Another article with the author knowing nothing about the law. Can someone sue a website for posting baseless and clueless articles!!

i wish it were so.

posted by : dany, 20 January 2008 Complain about this comment
may be possible

This may work if nvidia spins off ati.

posted by : aa, 20 January 2008 Complain about this comment
Ray Tracing

Haven't you guys seen the version of Doom that uses real time ray-tracing? When CPUs can do that effectively, what are you gonna need a GPU for again?

posted by : Rudemeister, 20 January 2008 Complain about this comment
ati

I think amd will sell ATI its not doing very well, the cards suck, I think intel would buy ati, then nvidia will buy whats left of amd 
thats my prediction anyway

posted by : stew magoo, 20 January 2008 Complain about this comment
Dam Nvidia

.

posted by : Jordan Alexander Hartley, 21 January 2008 Complain about this comment
why CPU+GPU

for those who haven't been following the CPU market closely:
both AMD and Intel are moving the GPU into the CPU. In 2+ years we will be able to chose a CPU with 8 cores, 2 of which are video dedicated, 1 of them is sound, and the other... well. take your pick.

these GPU in the CPU will be way different that the current raster engines.. they will be more of ray-tracing engines. Their close contact with the CPU means they have HUGE amounts of bandwidth to make this happen.

So if you are a GPU company, you better start selling CPUs too, or you will out of the business (or corned into a niche market) soon.


posted by : luis, 21 January 2008 Complain about this comment
AMD vs the world

Buying AMD by Intel or NVIDIA sucks for the customers. No competition mean Higher prices. What does mean buying AMD for both Intel and NVIDIA instant gain of market plus more money for the same silicon. Plus they wont need to invest in research that much as they need now. There wont be any competition for there products so no price drops. If there was no AMD todat will be still using P4 for 300$. So even for the Intel and Nvidia fans is big lose if AMD fail.

posted by : R9, 21 January 2008 Complain about this comment
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