AMD vs. Intel – the 40 year old battle ends
It is this battle, which has helped shape the very outlook of the modern era of microprocessors. Perhaps one of the biggest and oldest, corporate conflicts in the history of modern corporate world ended a couple of weeks ago – without making any substantial headlines in the newspapers.
After 40 years of tussle over Microprocessor – a product that has pretty much shaped the way our world looks like right now, at least on the technology front – Intel Corp. and Advanced Micro Devices Inc., reached upon a settlement.
Here, in summary, is the official announcement: On Nov. 12, after more than six months of negotiations, the last of them taking place in Hawaii Intel agreed to pay AMD $1.25 billion in settlement of various anti-trust allegations made in 2005 by the latter, smaller chip maker. And that, they say, is that.
But as per industry experts, the battle is far from over. While there are some who believe that the two tough competitors will learn to coexist as peaceably as those once-rancorous rivals, Microsoft and Apple. According to them, it were the legal costs of their incessant bickering that has ultimately forced them into forging a truce.
But there are others, who have watched Intel and AMD sparing no blows at each other, in what has been the nastiest corporate cat fight in recent valley history, and they doubt that business will significantly change.
“Everyone should be very skeptical” about peace being maintained, said Tom McCoy, AMD’s executive vice president for legal, corporate and public affairs. “We’ve had what I call tribal warfare for decades. But you know, at some point people have to put a stake in the ground and say, ‘We’re going to at least try to make a pivot.’ Time will tell.”
Because the settlement details steps the companies must take to resolve disputes before going to court, including holding quarterly meetings, “this will be very helpful going forward,” added Intel spokesman Chuck Mulloy. “It’s less expensive to get along.”
Well, in my own opinion, it’s tough to see how the situation will pan out, but one thing is for sure, that it’ll be kind of fun to watch the two play it nice – at least for now.