So just for fun, let’s think through how that would play out.
Right now, the most likelypotentialbuyer of Intelis Broadcom.
What would happen if they approached AMD about this license?
AMD would have a few options.
Their default position would likely be to just refuse and block the deal.
All of which is to say there is room for negotiation.
What would AMD ask for to grant that approval?
Obviously, they would take some cash.
However, there is only so much Broadcom would be willing to pay before the Intel deal becomes unappealing.
That probably amounts to a few billion dollars.
Beyond cash, there are things AMD could ask for that might be worth far more strategically.
For starters, they could ask Broadcom for help in their fight against Nvidia.
For example, Broadcom could invest more heavily in AMD’sUltra Ethernetand other networking initiatives.
Alternatively, Broadcom could design an entire networking stack optimized forAMD’s Mi300series of AI accelerators.
Going further, AMD could request that Broadcom encourage its AI ASIC customers to adopt AMD-friendly networking interfaces.
Alternatively, AMD could ask Broadcom to steer business toward ZT Systems.
AfterAMD acquires ZT, they plan to sell off ZT’s manufacturing side.
Securing a healthy backlog of Broadcom orders would certainly make that business more attractive.
AMD would also want to ensure Broadcom continues spinning off Altera, which competes with AMD’s Xilinx division.
They could even push Broadcom to commit to incorporating more Xilinx products into future designs and reference platforms.
Few potential buyers could offer AMD comparable strategic benefits.
The deal is unlikely, but if it happened, it would shake up many corners of the industry.
