AMD invests in cloud gaming company CiiNow
SUNNYVALE, Calif. (AP) — Chip maker Advanced Micro Devices Inc. said Tuesday that it has invested in CiiNow, a provider of cloud-based video game technology.
AMD did not say how much it invested and a representative could not immediately be reached for comment.
Cloud-based gaming lets people stream video games over the Internet. One of the most prominent startups in this area, OnLive, recently went through a complex bankruptcy alternative, reorganizing its business amid financial difficulties so it could keep operating.
But the technology holds promise.
"The cloud gaming industry, which was once thought of as technologically impossible, is now disrupting the gaming market for both consumers and game publishers," AMD said.
CiiNow's technology, which will now work with AMD's Radeon graphics, taps into this trend, it added.
Shares of AMD rose 27 cents, or 7.8 percent, to $3.74 in afternoon trading. The stock is still nearer the lower end of its 52-week range of $3.43 to $8.35.