Microsoft in talks to buy AMD - report

Microsoft is in talks to acquire chip manufacturer AMD, according to a new report.

Microsoft corporation has approached Advanced Micro Devices (AMD) to start talks about a possible acquisition.

KitGuru reports that talks started a few months ago. Exact proposal details are unknown, as are the results of the talk.

KitGuru estimates AMD's value at $1.81 billion, which is well within the range of Microsoft's current cash reserve of $95.3 billion.

AMD produces computer processors & GPUs, server processors, and - more importantly, system-on-chips that power both Xbox One and PlayStation 4. As the site notes, if these talks were to result in Microsoft owning AMD, it would save the firm a lot of money. Microsoft, as well as Sony, pay AMD in the range of $100 on each console produced.

On top of the savings Microsoft would be making on each console, sales of PlayStation 4 would also directly benefit Microsoft.

Along with Microsoft, Samsung is also one of the other major firms interested in acquiring AMD.