I'd be surprised if this turned out to be more than a rumor, but if it happened, Nvidia would become the only company making dedicated graphics cards.
|Rumor has it that graphics card developer, NVIDIA (NVDA) may attempt a acquire the CPU manufacturer and developer AMD (Advanced Micro Devices, AMD), who also owns ATI, another graphics card developer.
Recently this month, Nvidia just completed the acquisition of AGEIA, the physics card and software developer. If Nvidia were to also acquire AMD, it would put them in position to dominate the graphics card market as well as compete with Intel in the CPU market.
Nvidia also unveiled its first CPU, the APX2500, on February 11th and is scheduled to be released late this year. This chip is being created to be installed in Windows Mobile devices only and is capable at 12-megapixel picture and video. Despite not being able to natively decode HD-DVD and Blu-Ray formats, this chip could also be integrated into the video devices used in cars and in planes.
Intel is also pursuing the graphic card market and has set a course to develop its own discrete graphics processors. Intel would of course be Nvidia's biggest, and only major competitor, should they acquire AMD/ATI.