Advanced Micro Devices Inc (AMD)

[wbmw]

Re: One thing that all would agree on, I presume, is that it would cost AMD considerably more money to develop the 65nm and 45nm nodes on their own than it will cost them working together with IBM.

This is no doubt true, and the same can be said for IBM. Two companies working together will spend less money on a project than both companies working separately. However, I think the point that Chipguy is making is that the direction of monetary exchange should indicate which side has the greater amount of IP already invested in the project. IBM and AMD are both paying money in the form of paychecks to their process engineers, as well as any necessary equipment. The outcome of the decision suggests that, after all the engineers are paid, IBM still has about $250-280 million worth of IP per quarter that they are putting into the project greater than what AMD can offer.

This statement of the obvious only contradicts the fanatical claims of some on this thread that between AMD and IBM, it is AMD which offers the superior process technology. As Chipguy pointed out to those individuals, this is obviously a false ideology.