AMD bought ATI's GPUs for $5.4 billion. It skipped the software.
In 2006 AMD bought ATI for about $5.4B in stated value but did not fund a GPU software platform. ROCm arrived in 2016. Nvidia now holds an estimated 85% of data-center AI GPUs.
Transcript
In October 2006, AMD paid about $5.4 billion in stated value for ATI. It bought world-class GPUs, and skipped the cheaper step.
The next step was software that let ordinary developers program those chips. Nvidia had one: CUDA. AMD did not build it.
AMD had said why years before: we do not have the financial resources to compete with Intel on such a large scale. Its capital then went to servicing debt.
AMD's answer, ROCm, did not launch until 2016, a decade behind. Nvidia now holds an estimated 85% of the data-center AI GPU market.
AMD bought the engine and forgot to build the road. When you buy a capability, price the step that makes customers use it. One case does not prove software would have saved AMD.
The records behind this video
Every figure in the video comes from this Decision Record, each with its sources.
Run this decision
The Road Not Taken Strategy Pack. “What did the decision you did not take actually cost?” The framework, a model, a deck and the sourced cases, for running the same call on your own business. See the pack, $499 →
