The processor giant said it has a number of platforms in the pipeline for next year which will combine its processor technology with ATI's graphics processing unit (GPU) designs. At the end of 2008, the company plans to release Fusion, the integration of the GPU into the central processing unit (CPU).
The main benefits, AMD said in announcing the deal today, are improved power conservation and enhanced CPU functionality. It is pushing its integrated products at both mobile devices such as multimedia mobile handsets and gaming consoles, and also the likes of zero-noise home cinema systems.
AMD's chief technology officer Phil Hester said that ATI's products will continue to be used in association with AMD's graphics products and chipsets.
Update: AMD has also dispensed with ATI.com - the address now redirects to ati.amd.com .