Our sources within Intel said that AMD jumped the guns with the acquisition of ATI and that at the end it could have done the same job just by getting the engineers.

Intel acquired many ATI guys and almost the whole team from 3Dlabs and this is how it made Larrabee. To be honest it was a bit easier for Intel as it had a whole bunch of its people who were working on Intel integrated.

Our sources believe that AMD could hire most of ATI's engineers for far less money but I guess in that way it would end up with a patent infringement problem. Well it looks like Intel has all the patents it needs for Larrabee and this rumoured L2 cash is something that we've already seen at Xenos chip and this thing can give you almost free FSAA and Anisotropic filtering, at least at some resolutions.