# Microsoft might be thinking of buying AMD

According to a rumor, Microsoft might be interested in buying AMD. Lately the software giant has been acquiring a few hardware companies, will AMD be next? And what will that lead to?

## Why AMD?

With AMD reflecting upon splitting or selling divisions, Microsoft might be the interested buyer, but why? It’s well-known that Microsoft uses AMD chips for Xbox. Back in 2006 Microsoft even formed a chip-division to produce chips alternative to AMD/Nvidia, however the team couldn’t really produce valid alternatives that could compete because of price and especially performance. So Microsoft might really gain a piece of cake buying what its internal division could never achieve.

## Is that only a rumor?

The fact that AMD is thinking of splitting/selling units is not really a rumor, Microsoft interested in buying AMD is. However the rumor is accredited to a well-known Windows-focused site: KitGuru. Also, Microsoft has got nearly $95.3 billion cash whilst AMD is capitalized only$1.91 billion so if everything was settled by tomorrow, the operation would be immediate. Neither AMD nor Microsoft have yet spoken of the matter, so it’s still remaining a rumor. And even if the rumor should be confirmed, negotiations might be harder than one might imagine. However Microsoft would only need chips for its Xbox or maybe smartphones/tablets, but it wouldn’t need any server CPU nor any high-end graphic card. But AMD isn’t likely to sell only APUs to Microsoft since they are based on AMD server processors.

## What would that cause?

If Microsoft were to buy AMD for its Xbox-related needs, its direct competitor Sony would have a difficult time building its diamond-edge product: PlayStation 4 since it uses AMD chips. In this scenario Sony would have either to pay Microsoft for its chips or venture in a new field. For Linux users, that would almost surely mean the end of line because of drivers. However that isn’t to be taken for assured, since Microsoft is slowly taking a different approach towards Open Source. This is observable in the last year through .NET open sourcing and even a possibility that Windows becomes Open Source itself.

Image courtesy of Robert Scoble.

Image courtesy of Robert Scoble

The following two tabs change content below.

#### mark

The IT guy with a slight look of boredom in his eyes. Freelancer. Current interests: Kubernetes, Tensorflow, shiny new things.

#### You may also like...

This site uses Akismet to reduce spam. Learn how your comment data is processed.