What is an APU? Well, the short answer is that it is an Accelerated Processing Unit (APU). But what does that really mean? For AMD, it means that a low end graphics processing unit (GPU) is being combined with a traditional x86 CPU.

The real question that I have is, what will this do to NVIDIA? Since AMD is launching its APU, or Fusion line, with a GPU embedded in the CPU, and since Intel is launching Sandy Bridge with a GPU embedded in the CPU, what will NVIDIA do? On the extreme low end, which I define as under $100, I suspect the NVIDIA will lose market share to the point of becoming irrelevant. People buying low end desktops or laptops do not care (or even know) what kind of graphics card the computer has. On the low-, mid- and high-end I expect NVIDIA to still be relevant, as well as in the Quadro line. But how large is that market?

However, the Tesla line might be under some pressure in the next year or so. Imagine a high performance computer with Sandy Bridge or Fusion processors in it. Would you need, or want, to add a 200 Watt Tesla to such a system? After all, with Fusion, you get a one-to-one mapping of GPU with a CPU. We sure do live in exciting times, and it will be interesting to see how this plays out. For now, AMD and Intel are in the driver’s seat.

With Fusion technology from AMD, the PC industry will be changed forever. AMD is incorporating multi-core CPU (x86) technology, a powerful DirectX®11-capable discrete-level graphics and parallel processing engine onto a single die to create the first Accelerated Processing Unit (APU). Learn how AMD is doing that here.

via : What is an APU? @ InsideHPC