Probably so, because their CPUs weren't bringing in enough revenue and was underperforming compared to the Intel CPUs, so they had to rely on ATI. But being a CPU manufacturer, your not supposed to need another division to make your profits. AMD was ahead of Intel when they acquired ATI, so there should have been no need to rely on ATI. Microsoft's OS didn't help support their CPUs at that time either.
The new tech really matters because its better!
Thanks, Sir Overkill.