Despite suffering declining sales and considerable financial output from the acquisition of ATI, AMD is still full steam ahead when it comes to investing in new things. In fact, now they are sinking around $7.5 Million into Transmeta, in exchange for stock. This certainly comes as good news to Transmeta, which has seen a lot of financial trouble and recently decided to exit the processor market.
Transmeta hasn't released any statements about what they intend to do with the funds, though as the article brings out they probably need a good chunk of change to go after Intel with their IP lawsuits:
A more discerning observer might suggest that the investment has very little to do with technology, despite both companies' claims. Like AMD, Transmeta has a lawsuit aimed at Intel. AMD's helping hand should ensure that Transmeta can continue with the patent infringement case.
Around a year ago, AMD entered into a partnership with the ailing company, with goals of using Transmetas CPU technology in newer designs. Primarily at the low-power end of the market, AMD clearly wants all the advantage they can get to strike back at Intel (assuming it's still going to happen).