Chip Maker AMD Gets Emirate Cash

Abu Dhabi buys 8.1% stake in Intel rival for $622 million
By Laila Weir,  Newser User
Posted Nov 16, 2007 4:39 PM CST
Advanced Micro Devices CEO Hector Ruiz is seen in this photo provided by AMD. (AP Photo/Advanced Micro Devices, ho)   (Associated Press)
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(Newser) – The government of Abu Dhabi, through its investment arm, bought an 8.1% stake in Advanced Micro Devices for $622 million. It will receive 49 million newly-issued AMD shares, but won't get any board representation. The computer chip maker desperately needs the cash after a $396 million loss during the third quarter, reports the Wall Street Journal.

Analysts gave the paper conflicting opinions on whether the money will make a long-term difference for the struggling Intel rival. But David Kirkpatrick predicts in Fortune that now AMD can "keep up its healthy annoyance of Intel" -- "pushing the boundaries of computing for all of our benefit" -- for at least awhile longer.