More news from AMD today as it seems the company might get a nice cash injection. Loongson Technology, a CPU joint venture between Beijing-based chip designer BLX IC Design Corp, the Chinese Academy of Sciences and the Institute of Computing Technology, is set to make key investments into AMD's product lines and technologies.

Loongson and AMD have worked together before in the past. AMD’s HyperTransport and PCI South as well as North bridges were in previous Godson silicon, so for Loongson AMD is not entirely foreign territory. The two opened an R&D center in December 2003 in order to develop what the two hoped would be something to counter the goliath of Intel. 

Investing in AMD’s various technologies and product lines would be a much easier transaction for Loongson. It would not have to deal with the regulatory burden the US government might impose, nor would it need to negotiate an x86 license from Intel (NASDAQ: INTC). It is not yet clear what the end result of such investments might look like, but it could be that Loongson markets future Godson systems with more AMD inside — such as GCN GPU architecture.

Loongson earns their reputation for its line of MIPS-based Godson processors. The Chinese firm has reserved 120 million yuan (around US$19.2 billion) for a series of acquisitions and strategic investments.

How much money AMD is going to retrieve we do now know, but it could be substantial.

AMD Could Potentially Get 19B investment