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Nvidia Corp., one of the world’s leading producers of graphics processors and chipsets, has said that the acquisition of its arch-rival ATI Technologies by Advanced Micro Devices is a positive move for it, as it will remain the only graphics chips dedicated company and also one of the three “neutral” chipset makers.

“Today’s news about the acquisition of ATI by AMD is a positive development for Nvidia We are now the only graphics processor and core logic company that supports both Intel and AMD processors,” said the company in a statement published by AMDZone web-site.

Historically there were tens of companies producing of x86 processors and tens of firms developing graphics processors, however eventually there remained two makers of x86 chips and two creators of graphics processing units (GPUs), both of which have been trying hard to tap into the different markets. ATI’s product portfolio by far exceeds Nvidia’s, who has always been very focused on discrete graphics chips and core-logic sets.

“We will continue to execute on our strategy, which is to develop industry-changing GPU and platform technologies, extend the use of the GPU into new applications, and expand its reach into all computing devices - from PCs to servers to phones,” the company also said.

There are debates within the industry that AMD may refocus ATI Technologies to create platforms around AMD processors, which means that the company will have less resources for graphics processors. Additionally, ATI may not get a license on next-gen bus for Intel processors, which may result in its chipset market share shrinking. Nevertheless, even if ATI will be refocused on AMD platforms, it will mean that Nvidia may be forced out of them.

ATI Technologies and AMD said that there would be no refocus and the first platforms from the newly formed company should be expected towards 2008 timeframe.

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