The ATI acquisition will let AMD offer OEMs more one-stop shopping and a greater chance of cutting their procurement costs. Seems they're all determined to bring costs down anywhere from 3%-10% a year.

Anyway, Peddie says it could take Intel over a year to produce a GPU, but that there have been rumors circulating since May about Intel having such an in-house project and that it really doesn't have any other viable options.

He also says that Intel can't match AMD's proposed integrated CPU-GPU - described as a cost-reducing approach for value and lower-end mainstream chips - until it gets itself a CPU with an internal memory manager like AMD's, which it is also supposed to be working on.

Peddie thinks the SEC could delay ATI's merger into AMD if it gets to poking around the spike in ATI's share price after the AMD deal was leaked but before it was officially announced.

This story was originally published in Client/Server News.