The Beginning: The Shot Heard Around the World

It all started back in 2001 when ATI, independent at the time, was working on the R300 GPU (Radeon 9700 Pro). If you were following the industry at all back then, you’d never forget the R300. NVIDIA was steadily gaining steam and nothing ATI could do was enough to dethrone the king. The original Radeon was a nice attempt but poor drivers and no real performance advantage kept NVIDIA customers loyal. The Radeon 8500 wasn’t good at all; there was just no beating NVIDIA’s GeForce4, the Ti 4200 did well in the mainstream market and the Ti 4600 was king of the high end.

While ATI was taking punches with the original Radeon and Radeon 8500, internally the company decided that in order to win the market - it had to win the halo. If ATI could produce the fastest GPU, it would get the brand recognition and loyalty necessary to not only sell those high end GPUs but also lower end models at cheaper price points. The GPU would hit the high end first, but within the next 6 - 12 months we’d see derivatives for lower market segments. One important takeaway is that at this point, the high end of the market was $399 - keep that in mind.

With everyone at ATI thinking that they had to make the fastest GPU in the world in order to beat NVIDIA, the successor to the Radeon 8500 was going to be a big GPU. The Radeon 8500 was built on a 0.15-micron manufacturing process and had around 60M transistors; R300 was going to be built on the same process, but with 110M transistors - nearly twice that of the 8500 without a die shrink.

Its competition, the GeForce4 was still only a 63M transistor chip and even NVIDIA didn’t dare to build something so big on the 150nm node, the GF4 successor would wait for 130nm.

We all know how the story unfolded from here. The R300 was eventually branded the ATI Radeon 9700 Pro and mopped the floor with the GeForce4. What Intel did to AMD with Conroe, ATI did to NVIDIA with R300 - back in 2002.

The success with R300 solidified ATI’s strategy: in order to beat NVIDIA, it had to keep pushing the envelope for chip size. Each subsequent GPU would have to be bigger and faster at the high end. Begun these GPU wars had.

Index Re-evaluating Strategy, Creating the RV770 in 2005
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  • PrinceGaz - Wednesday, December 3, 2008 - link

    Now that is the sort of reason I visit AT every day. Superb article. Thanks Anand. Reply
  • 1078feba - Thursday, December 4, 2008 - link

    Couldn't agree more. Quite simply, this is the best article about hardware architecture I have ever had the distinct pleasure of reading. The human perspective adds an element of drama which cannot be underestimated. Very nearly reads like a Hollywood script, a la Jeff Bridges in "Tucker".

    Cheers Anand, bravo, well done.
    Reply
  • fyleow - Wednesday, December 3, 2008 - link

    Is this a typo? Did you mean to say Carrell instead of Carol?

    "Carol recalled a story where Rick Bergman and others were at a table discussing RV770; Rick turned to Matt Skynner and asked him if he thought they could really do it, if they could make RV770 a smaller-than-NVIDIA GPU and still be successful, if it was possible to create a halo in the Performance segment."
    Reply
  • Kromis - Wednesday, December 3, 2008 - link

    Watching too much of "The Office", eh?

    I kid, I kid. (Good show, by the way)
    Reply
  • erikejw - Sunday, December 7, 2008 - link

    A really really good article with lots of good info.

    I think though that it is sad that you missed the opportunity to get the best insight you can into future GPU trends and technology for the coming years. That would have been an even better article.
    Reply
  • rarson - Monday, April 24, 2017 - link

    This post needs to be preserved for posterity. Reply

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