ATI swallowed. Video Skype. Zune. Google Traffic.

AMD purchased ATI for $5.6 billion in cash and stock giving the chip maker a strong foothold in the graphic chip market.

The developers of Skype and Kazaa are working on a video distribution service. Code named the Venice Project. They’re entering a market where there’s lots of competition—240 video sharing companies at last count including YouTube which boasts “100 million videos served every day.”

This has been simmering for a while, but now it’s official. Microsoft is going to try to take a bite out of Apple’s 3/4 share of the portable player market with the release of Zune—a portable media player with Wi-Fi connectivity.

And Google Maps now includes live traffic information indicated on your route. To get Google Maps on your mobile phone, first check to see if your device is supported, and then download the software.