Why does NVIDIA need AMD (and vice versa)?

GodCorleone

Honorable
Apr 12, 2014
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10,530
I hear a lot of people saying that AMD has to be a competitor to NVIDIA regardless if their cards are good or not. If AMD goes bankrupt, it’s guaranteed Nvidia will pay them out of it. Why so? Can someone explain this to me? Will Nvidia really not let go of AMD if (hyoothetically) AMD goes bankrupt?
 
Solution
You also have to remember, if AMD goes under, companies like Intel and Nvidia would likely be considered monopolies, and would therefore be broken up by the government into 2 or 3 smaller companies each. So Intel and Nvidia need AMD to keep themselves alive as well, just like how Microsoft needed Apple.

More Info on Monopolies: http://www.investopedia.com/terms/m/monopoly.asp

And like Karadjgne said, healthy competition is needed for advancement and progress, AMD has fallen behind in CPU power, which has made Intel kinda lax, just look at the performance differences between Skylake and Haswell, or should I say, lack of performance differences :)

Silverbear

Honorable
Feb 24, 2015
593
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11,360
You also have to remember, if AMD goes under, companies like Intel and Nvidia would likely be considered monopolies, and would therefore be broken up by the government into 2 or 3 smaller companies each. So Intel and Nvidia need AMD to keep themselves alive as well, just like how Microsoft needed Apple.

More Info on Monopolies: http://www.investopedia.com/terms/m/monopoly.asp

And like Karadjgne said, healthy competition is needed for advancement and progress, AMD has fallen behind in CPU power, which has made Intel kinda lax, just look at the performance differences between Skylake and Haswell, or should I say, lack of performance differences :)
 
Solution