Following closely behind Intel's purchase of Havok, word on the street is that AMD is eyeing off physics accelerator and API maker Ageia. In an interview with Custom PC, AMD’s head of developer relations, Richard Huddy, claims that price is the main issue at the present time. "No one would think of us as cash rich at the moment, so splashing an extra $100 million just to get physics, which is a niche market, is quite an issue for us." However, he doesn't rule the company out of the acquisition if the price is right...

Why would a company such as Ageia cost so much? Well, now that Intel has bought Havok, Huddy reckons that AMD isn’t the only company thinking of buying Ageia, and this would push up the price. ‘I bet that the same thing has gone through the minds of Nvidia,’ said Huddy, ‘and the other companies that play in this marketplace.’ Huddy even said that ‘someone like Sony or Nintendo might think about doing it to acquire the IP and the hardware for the next generation of technologies. There are a number of players who would be interested – if there was only one then the price would plummet, but unfortunately it’s one of those situations where getting that unique advantage genuinely raises the price for Ageia'... However, we asked Huddy if he’d rule out AMD buying Ageia if the price was right, and he said ‘no, absolutely not…I certainly don’t rule us out from going through that discussion in future.’