Two months after first announcing its chip-making spin-off, AMD has said it will get a smaller stake than initially planned in the new company after renegotiating the transaction agreements. Apparently, the value of AMD assets being contributed to the joint venture with Abu Dhabi investment entities has been cut, reducing AMD’s stake in the venture to 34 percent from its original take of 44 percent.

ATIC, one of the two Abu Dhabi firms behind the deal, will now own approximately 65.8 percent of The Foundry Company stock. However, both companies will retain equal voting rights. The other firm involved, Mubadala, still intends to purchase 58 million AMD shares as part of the deal, but it will do so at a revised stock price: either the average for the 20 days leading up to and including December 12 or the average in the 20 days before the deal closes, whichever is lower.

AMD will also issue to Mubadala an additional 5 million warrants to purchase AMD stock, for a total of 35 million warrants. They expect the deal to close at the beginning of 2009.

AMD is making quite a few concessions here, but it may have no other option as it tries to cut costs following a string of quarterly losses that have amounted to several billion dollars. Here’s hoping they can step up competition against Intel with their upcoming Deneb chips, they certainly need to.