Intel threatens AMD with termination of x86 license within 60 days
By Nilay Patel 
posted March 16th 2009 1:14PM
posted March 16th 2009 1:14PM
Intel's been making noise about AMD's Globalfoundries manufacturing spinoff potentially violating the two companies' patent cross-licensing agreement for a while now, and it looks like things are escalating: AMD's latest SEC filing says that Intel's formally threatened to terminate the license if AMD doesn't make it better within 60 days. It's not clear exactly what Intel wants here -- we doubt anyone thinks AMD is going to undo the spinoff -- so we'll see what happens next, but we've got a feeling Intel's trying to put the boot down while AMD's on the ground.[Thanks, Chris]
Read - Reuters
Read - AMD SEC filing
arm, via ftw!
edit..nah they suck
@ Nilay Patel
True, but today the balancing of creative incentives and resulting societal wealth is totally out of whak. I personally think oppressive copyright and patents are why we have only seen phantom GDP increases over the last 30 years.
http://www.newswise.com/articles/view/549822/?sc=dwhn
I basically hate Intel because of this crap.. This is why I will never buy a CHIP from them.. AMD is the shiz, for shizzle.
http://shizzle.ytmnd.com/
I atm personally prefer Intel processors - but anyone (especially someone doing a so called business course) must realize that the market NEEDS competition and in the consumer desktop/laptop sector the only 2 major players are Intel and AMD - do you seriously think Intel would have any notions of fair market prices if AMD went down the drain?
Honestly I say AWESOME! I love my new Core i7 Chip it is sweeter than AMD has out period! HANDS DOWN! Intel has the innovation. For awhile they sat on it but came back with a fierce fight. The now have exclusives with the likes of APPLE and many PC manufacturers DELL, HP, COMPAQ, SONY, LENOVO, MSI, ASUS all choose Intel as there choice for CPU's! I say congrats Intel on your victorious win. Also if AMD wants to be a douche bag and break Intels agreement then AMD should have never made the agreement in the first place. It's Intels fault for inforcing an agreement with someone they made? How is that fair to blame Intel for making AMD own up to its promise that AMD fully made on its own? You guys are just being silly! AMD can't stand the heat then they need to get out of the kitchen! All they are doing is crowding the market with junk CPU's lately. Let Nvidia and Intel do our graphics and CPU manufacturing. In this world it is the survival of the fittest not some pitty party for the weaker sibling. This is the way our world works like it or not. It is a harsh observation but true! Intel invented the technology anyways so AMD can go to hell and make there own idea up :)
[quote]Also if AMD wants to be a douche bag and break Intels agreement then AMD should have never made the agreement in the first place. It's Intels fault for enforcing an agreement with someone they made? How is that fair to blame Intel for making AMD own up to its promise that AMD fully made on its own?[/quote]
Ignorance is bliss... Read my post above for a basic summery as to why there is a limitation to AMD's production capabilities.
This agreement is more then 20 years old, and not up to the times. For AMD, this move is smart, for Intel, this move can mean more competition. And with more, i mean real competition. Up to now, AMD was limited in its production capabilities because off that 20 year old agreement. If AMD did not feel confident that they can prevent Intel from using the x86 patents against them, they sure as hell won't have taken the risks to get rid off it now.
But, like some other posters have pointed out, Intel is also in trouble if AMD pulls the licences off several IP that it has, and that Intel used! The knife cuts both ways. Lets say, Intel goes after AMD's core bussiness, and wants a sell restriction on all x86 AMD cpu's. AMD pulls there licenses that Intel can use. That means bye bye integrated memory controller in your i7! So, in effect, Intel can not sell anymore i7's. Say bye bye on multi core cpu's...
On off the conditions off that original deal was, with the use by AMD for the x86 instruction set, Intel was allowed to use AMD's IP. When that deal is broken, and Intel keeps insisting that it is, that mean in direct, that anything AMD IP related will also be impossible to use by Intel.
Do you know the term Mutually Assured Destruction? Like i wrote above, both party's will come up with a new agreement. Its just bluff poker. Flex your mussels a bit at each other... How much to you want to bet, that Intel will allow the external production off CPU's, but, with a preset "limitation" in place ;) Defacto protecting there monopolistic position off 75% ...
So, Hawtkouture stop acting like a rabbit fanboy, and take some business classes. And work in the IT industry, and you will learn how deal really are done.
crowding the market with junk cpu's lately?
the phenom ii x4 940 rocks my socks off, and for a fraction of the price of the i7 940. if amd disappears then what's to prevent intel from jacking up the already high prices? both great processors but if the competition is no longer there then what would be their motivation to continue to innovate? i'm sure you love your new i7 but you'll hate it if in 10 years if that's still intel's top line
Aside from posting that wall of text and critting every pour soul who reads it for over 9000, you seem to be missing the whole idea of competition. If AMD can't compete with Intel, what incentive does Intel have to release the best possible products?
They'd just release the i7a, i7b, i7c, etc...all maybe 2-3% faster and call them 'revolutionary' while charging us an arm an a leg for essentially the same product.
Having GOOD competition drives innovation.
LOL I dont have much to say to you other than. I'm in college for business lame a$$. I love intel. My opinion. I really dont give a flying F what you think about what I said. It's my opinion :) Also as for the fanboy comment. I'm no fanboy of Intel I just think they are the better choice. You however are rude and like to insult people to make you're point. Just because I have an opposing opinion you have to try and make me feel bad about myself with infantile remarks? Trying to make me look stupid with your IT commentary? I'm sure your some fat nasty nerd who is sitting in his mothers basement writing these silly little comments. I really could care less what you think about me. You however have some sort of mission to waste your time and come onto these boards and act like god. I pitty you, I really do! I wish I had enough time on my hands to act like a fool all day. You must be a bigger douche bag than AMD :) All I have to say is get a life. Just because Intel is the big dog and is beating AMD over the head and will continue to put them under. Doesn't mean AMD needs your help to look and stupider. You must know how it feels to fight for the underdog when you are one yourself. Like I said before! YAY! Intel! Kick the shit out of AMD and make it last this time for good!
Hawtkouture, please stop embarrassing yourself.
I believe in competition. I never said I didn't. I think it is important for intel to have competition thus making prices better, and keep Intel innovative. I do agree that in 10 years I would be disappointed if Intel did what they had done before and sat on there ass and had the same Core i7 shit out 10 years from now. However I really think there is other companies than AMD that can be that competition :). I don't think AMD is the only kid on the block that has innovative ideas that can pose a real threat to Intel. I think Nvidia and some other choice companies have the ability as well. Either way I really could care less about either one. Intel makes better chips right now. I wouldn't buy anything AMD period! Hopefully we will see some other companies step up the plate with big names and really blow our socks off :) Until then I will hold my breathe. Like I said to each their own :)
Also @ Kilton - I do agree with you thanks for responding to my comment with something intelligent. Unlike the other 2 idiots who responded to me trying to insult me and hurt my feelings with there silly low blows :) Competition yes it is important :) I agree. Just not a fan of AMD. Not everyone is going to love what other people love. Just plain and simple as that.Kinda like those APPLE fanboys out there. They will cut you in half if they hear you talking about there beloved apple :)
@ Forrest.
If you think one paragraph is a wall of text then you need to stop coming onto boards to read threads. It is pretty funny to think in your small brain, a wall of text is 1 paragraph you must be very limited. Sorry you read so slow. I guess a chapter of text could be considered a wall but a paragraph give me a break. Go attack someone else. Just because you insult does not mean Im going to agree. Especially if you are trying to argue a case. It just makes your case seem like you are lashing out at someone for no reason. Doesn't sound very intelligent, a wall of text or not. :)
@ Benjiro
I read your whole blahh blahh blahh. I think everyone did. I was done with it and I dont care. I was not responding to you. I didn't really even have you in mind when I made my comment. I'm sorry I opposed your little speech. I really could care less. Intel is better than AMD, I think most would agree with me, in terms of technology and innovation at this very moment. Like I said before the SURVIVAL OF THE FITTEST! If AMD can't make it! Good luck and farewell. Thats how this world works :)
http://www.urbandictionary.com/define.php?term=wall+of+text
A wall of text is a wall of text, regardless of how long it is. You have several distinct thoughts in that diatribe, and it would be much easier to read if you took a breath in between some of them.
If you're in school for business I *highly* recommend taking a class in technical writing, and pay special attention to the concept of white space:
http://en.wikipedia.org/wiki/White_space_(visual_arts)
Your instructors, and eventually your coworkers will thank you.
This is an empty threat from Intel.
x86-64 (AMD invented it and called it AMD64, Intel has called it IA-32e, EM64T, and now Intel 64) is absolutely entrenched in the server and workstation markets and is getting increasingly entrenched in the desktop market. AMD holds a LOT of patents on AMD64.
PAE doesn't solve the 32-bit problem. PAE allows you to have more than 4GB of memory, but it doesn't allow any one process (application) to address more than 4GB of memory.
Intel could come out with a new 64-bit architecture in an effort to circumvent AMD's patents, but we have several years of x64 CPUs (every Core 2 and Core i7 ever made, later Pentium D and Pentium 4 CPUs, every Athlon 64, Opteron, and Phenom) that aren't going to go away.
So, yeah, killing AMD's IA-32 licenses would be devastating to AMD. But killing Intel's AMD64 licenses would be devastating to Intel. It's like nuclear war - nobody wins.
Guys,
Intel is just saber rattling, they know completely shutting down the license would spawn all sorts for anti-trust campaigns and not to mention negative PR. I think AMD has some technology or license that they want and they are using this as a bargaining chip to get it.
I guess both parties will work out a new licensing agreement - Intel will no doubt be happy to avoid any serious anti-trust accusations, and a new agreement could be another lucrative stream of revenue for them. I doubt AMD will want to have their foundry project thrown into doubt at this delicate time, especially as they are struggling to find their feet in response to Intel's well executed Core 2 strategy. Could be a win/win for both sides AND their respective lawyers!
Intel -> AMD
PEW PEW PEW
This will never happen for reasons far too numerous to list here.
Competition in the market is the best thing for consumers. Keeps prices low and keeps innovation moving forward with technology. Best line to describe what Intel wants to do "Rich get richer and the poor gets poorer." What is Intel afraid of? Their i7's are best on the market by far so let AMD mass produce more CPU's, makes the i7 more affordable (the same with the motherboard makers for LGA1366). Keep the prices LOOOOOOOW!!
Ahhh free market capitalism, all it's advocates indicate that left to its own devices there would be competition and consumers would decide what they want to buy, and everything would work like a fantasy dreamworld with low prices, blah blah blah.
Guess what, left to it's own devices this happens, constantly. One company emerges dominant, it smashes, buys, uses the "law" to destroy all competition, becomes a monopoly and sells it's products at a premium far above what most people want to pay, but have no other choice.
Evidence, go read Titan or any other book about John D Rockefeller, he grew up in a US with no business regulation of any kind and immediately turned Standard Oil into an unstoppable monopoly to the detriment of the general public and other businesses. He's part of the reason monopoly legislation came into being!
NVIDIA only computers coming soon? Yikes!
Hawtkouture, you are certainly entitled to your opinion. But you mis-stated several FACTS.
1. Dell does sell both desktops and servers with AMD processors. (I buy them regularly)
2. HP offers AMD processors (Compaq is part of HP, but I don't know if there are Compaq branded AMD systems).
3. ASUS and MSI bot offer AMD solutions.
If you are a college student, you must be a pretty poor one because your writing skills are very poor. Your attitude is junior high at best. As I see it you were provided with well written, well thought out facts, and it is you that appears to be rude, childish and down right obnoxious. You don't even bother to check your facts before you post. You are simply another troll and were it not for correcting the FACTS for the benefit of others, I would not have bothered to respond.
Ya, this will help the economy just like suing Microsoft helped at the peak of the Internet bubble... /sarcasm off
I want to see what happens next
Either Intel and AMD will negotiate a new agreement or instruction set patents will be voided. AMD gets to keep selling x86 chips either way, but personally, I'd prefer the latter just to see Intel get knocked down a bit.
The U.S. Goverment will also not allow this because they require redundancy in manufacturing with everything. That is the reason AMD got the licenses for the x86 instruction set in the first place. I know technically VIA can still manufacture x86 products, but they do not have the capacity even near AMD which would leave Intel pretty much the sole provider of x86 chips. VIA also only has only four years left on their cross patent licensing with Intel, so if AMD is forced out of x86, technically the only other company to produce x86 chips could lose that ability in 2013. Thus leaving Intel the sole provider of new x86 chips.
@ Kilton...
Hey, I'm a fan of both AMD and Intel, but right now, your PII gets its ass kicked on all marks of measure by i7. Even price vs performance i7 comes out way ahead.
All of you guys can sit here and cheer for the underdog, but it doesn't change the fact that Intel is the performance leader, and AMD has nothing in the IP department to battle Intel in the near term.
If thats the case - why would Intel do this in the first place? I'd most certainly say that Intel is doing this out of fear. If Intel didn't feel a threat, none of this would have transpired to begin with.
@Hawtkouture
Check your facts:
"Intel is better than AMD, I think most would agree with me, in terms of technology and innovation at this very moment."
Intel Innovations:
-x86 Architecture (20 years ago)
-The first dual core chip (like 7 years ago)
-The Intel Atom! (what a lot of good that was)
AMD/ATI Innovations:
-First Native Quad-Core
-The Athlon Processor
-Actually Decent IGP (first mobos with HDMI)
-X64 Instruction Set
-An Affordable Quad Core Processor
-Fastest GPU available 4870x2 (for a time anyway, but thats the nature of GPU's)
Yes, it is true that Intel is "better" than AMD right now. This is only because of bad buisness on the part of Intel to restrict the ability of AMD to compete fairly. If your beating the crap out of someone at soccer because you broke their toes, does that mean that your "better" than them at soccer?
"I really could care less what you think about me. You however have some sort of mission to waste your time and come onto these boards and act like god. I pitty you, I really do! I wish I had enough time on my hands to act like a fool all day"
You are chastising him about acting like a god? Hahahaha, the hypocrisy is delicious.
"LOL I dont have much to say to you other than. I'm in college for business lame a$$."
". It is pretty funny to think in your small brain, a wall of text is 1 paragraph you must be very limited. Sorry you read so slow. I guess a chapter of text could be considered a wall but a paragraph give me a break. Go attack someone else. Just because you insult does not mean Im going to agree. Especially if you are trying to argue a case."
So, you think that just insulting someone is not an effective argument. Tell me, what is it called when you say someone has a "small brain"? With all the time your college saves not teaching you how to write and argue like an educated human being, do you just practice being a hypocrite?
DISCLAIMER: I know im insulting him/her here, i dont care, therefore, dont call me a hypocrite, i am well aware of it.
Should've left the atom since Yukon pwn's it clock for clock.
@Hawtkouture
You do know I7 would be illegal for intel to make if AMD dropped its licensing.
@Ihatemorons
Check your facts, a 720 BE with it's 4th core unlocked owns the I7 920, and the 955 has a chance at beating the I7 940 at stock clocks and breaks breaks 4ghz without a sweat, will probably get to 5ghz with good cooling. And last time I checked £105 ex vat does not equal £215 ex vat.
As far as I can tell AMD was the first company to come up with a dual core design (and it was native by the way). After that, Intel came up with Pentium D processors wich consisted of two separate prescott cores.
To all interested about that patent dispute, I suggest reading this article:
http://osnews.com/story/21138/Intel_AMD_Has_Broken_2001_Cross-Licensing_Deal
IMHO the best thing would be Intel and AMD dropping all that x86 baggage and start making true RISC CPU's. A good sign is ARM entering the netbook market and if Microsoft sees a market in those devices and ports windows to them, I see no obstacles for both of the companies for making such a move.
intel is at it again... *sign*
thats ok, i would rather wait for the AMD fusion processors to come out, cpu and gpu on one chip hellz yeah.
Whats' the issue here? This might be a simplistic view of it but Intel licensed the tech to AMD and only AMD at the time. That's the whole complaint boiled down to everything. Doesn't matter if Global Foundries is a grey area AMD subsidiary its' not "AMD" producing x86 chips anymore. Agreements probably say Intel licenses X specifications to AMD for such and such duration to be produced up to Xy amounts per fiscal quarter not exceeding Xz units. You can blatter on and on about it but that pretty much is the argument.
when was x86 invented?, don't it have to be free/public by now?
So then Intel is a monopoly?, !$#!#$ patent throlls (feudal rules)
where is freedom and antimonopoly and democracy ?
Maybe Intel is more afraid of AMD and their new foundry making clones of x86 embedded chips that does not require the peak level of performance, but just are able to run the legacy x86 programs.
The new market for growth does not lie at the PC CPU biz anymore. The new processor growth will come from embedded CPUs in NAS, media players, game consoles and other consumer electronics. But if the Chip can run x86 there is room for Windows software to run and control the appliances. Maybe Intel is aiming to control AMD for not making x86 chips on a lower watt chips in high volume and low prices.
This is why I'm an AMD fan from k6 till the end. The underdog will
always be who I prefer AMD AMD AMD AMD AMD AMD and the crowds so wild
with the 1,2, punch.......
Problem is that since the intel atom is declared the new 'desktop' CPU it means even amd can compete and now intel is threatened :)
I wonder if the death of x86 will finally force us to move onto slightly less archaic processing architectures? It might be worth the RISC! Ha. See what I did there?
eheh
Would also be funny if apple's OSX would have no CPU's anymore because RISC replaced x86.