AMD to set up Radeon graphics chips as a separate business

Advanced Micro Devices announced today that it is creating a separate, standalone division dubbed Radeon Technology Group for its graphics chip business.

Raja Koduri heads the new division. He’s a graphics expert who has worked at the company for many years, with one interruption for a stint at Apple. AMD isn’t spinning it out as a separate company yet, but indications are that the company is preparing for that potential outcome. It’s a pretty drastic change for AMD, which acquired the graphics chip business in 2005 with the $5.4 billion purchase of ATI Technologies.