Microsoft’s APU Deal With AMD Reportedly Worth Over $3 Billion

Posted May 28, 2013

When Microsoft Corporation announced the new Xbox One, it was revealed that the console would use an AMD 8-core APU.  This deal is very lucrative for AMD.  Microsoft is reportedly paying $3 billion to use these new chips in the Xbox One, according to NVIDIA’s VP of Technology Licensing Bob Feldstein.

Feldstein is the former corporate VP of business development at AMD so he likely has his ear to the ground for this type of information and can be considered a reliable source.  At AMD, Feldstein oversaw the business management and supply chain negotiations for the Xbox One.  The $3 billion deal likely includes the ?the coordination of multiple functional teams within AMD, as well as regular customer meetings with leadership teams responsible for handling the challenges of complex, muti-year deals.?

AMD is also working with other large console partners.  The Sony PlayStation 4 uses AMD’s Jaguar processor, but the value of that deal was left undisclosed.  Nintendo also powers the Wii U console with AMD components.

Feldstein reported the figures of the deal on his private LinkedIn account.  Unfortunately, Feldstein did not leave AMD on good terms.  AMD sued him and other former employees for allegedly giving company secrets to NVIDIA.