3dfx Buys Gigapixel

Struggling 3D chipmaker 3dfx is investing $186 million, in the form of 15.6 million 3dfx shares and options, to acquire would be privately held Gigapixel Corporation. 3dfx hopes to exploits Gigapixel's core technologies, those that reduce power and memory consumption in 3D acceleration, in both tradition accelerators and products related to new 3D markets like cell phones and PDA's. "There is a substantial opportunity to enable graphics differentiation by providing high quality 3D display capabilities in low power and low cost form factors," said 3dfx CEO Alex Luepp, "This is a tremendous growth opportunity, and it is a market that is presently largely untapped." As part of the deal, Gigapixel CEO George Haber will join the 3dfx Board of Directors.