The 20 Most Important Moments in the History of ATI
Nvidia Enters the Scene

The year was 1993 when Jen-Hsun Huang, Chris Malachowsky, and Curtis Priem formed a little company called Nvidia. All three men brought prior experience in the industry to their new venture, including building processors for AMD (Huang). Nvidia started off as a fabless company, meaning it didn't have its own manufacturing plant to kick out wafers and integrated circuits.
That would soon change, setting the stage for a fierce rivarly with ATI that would rage on for years, even as other graphics makers fell by the wayside and/or out of prominence. Today the discrete graphics market is almost totally owned by AMD (which now owns ATI) and Nvidia.
Mach64 Videocard Puts ATI Back on Track
Released in 1994, the Mach64 was ATI's first graphics card to boast full-motion video acceleration. Along with S3's Trio, these cards put the squeeze on companies like Oak Technologies and Cirrus Logic, both of which were beginning to lose market share to the competition with their fancy accelerators capable of offloading video tasks.

Image Credit: hattix.co.uk
The Mach64 shipped with up to 8MB of video memory on a 64-bit bus. ATI's Mach64 architecture also flexed its muscle in the professional graphics market, such as the Graphics Pro Turbo. Not for the faint of wallet, a Graphics Pro Turbo equipped with 2MB of VRAM listed for $600, while a 4MB model sold for $900. A veritable bargain compared to what professional graphics card sell for today.
1995 Happened

In 1995, ATI did something no other graphics vendor had ever done. The company released a videocard for the Mac platform, becoming the first company in the world to cater to both the PC (as in, Windows-based) and Mac. It was called the XCLAIM GA, an OEM part for Apple's PowerPC products.
"ATI is bringing affordable performance to the Power Macintosh market with a graphics accelerator board specifically deigned for Macintosh design and publishing professionals," AIT announced at the time. "Our PCI-based accelerators are priced at a third of what users would pay for traditional NuBus graphics cards."
The XCLAIM GA used ATI's Mach64 graphics controller and supported resolutions up to 1600x122 with a 75Hz refresh rate. It was available in both 2MB and 4MB versions with MSRPs of $450 and $650, respectively.
Equally important, supplying graphics cards to Apple played a role in ATI's return to profitability in 1995. Later in the year, ATI, United Microelectronics, and a few other partners entered into an agreement to build a semiconductor plant in Taiwan, giving ATI the foundry capacity it needed to remain a major player in the graphics market.
ATI Releases World's First 3D Graphics Card

By the time 1996 rolled around, the graphics market was no longer new, but it still hadn't seen its first 3D accelerator. That changed when ATI launched its 3D Rage chip, which was also called the Mach64 GT because it mashed 3D technology with the Mach64's 2D capabilities. The 3D Rage powered most of ATI's graphics solutions and would later provide a compelling alternative to 3dfx's mighty Voodoo chipset. The advance into 3D territory helped ATI sell over a million chips in 1996.
Birth of the All-in-Wonder Series
A graphics card with a built-in TV tuner? Brilliant! That was the idea behind ATI's now infamous All-in-Wonder line, which was first launched on November 11, 1996. The original All-in-Wonder was built around the 3D Rage II+ engine and slid into any available standard PCI port (it would be another year before AGP would emerge).

Combining TV functionality with computer graphics proved popular and there would be several AIW cards to follow. In almost every case, these cards would run a little slower than the 3D cards they were built around, but it was a trade-off HTPC enthusiasts were willing to make. The AIW line lived on for over a decade until ATI unofficially retired the series with the All-in-Wonder HD in 2008, the last AIW card to date.
First to Fully Support AGP
By the late 1990s, it was no longer a question of whether or not there existed a market for 3D graphics hardware, but how best to cater to it. There were two problems with the PCI bus. First, it was simply too slow. But compounding the problem, any device plugged into a PCI port had to share bandwidth with other devices.

In 1997, the Accelerated Graphics Port (AGP) was born. Built specifically for graphics cards, the AGP port solved both problems, but early graphics cards failed to take full advantage of the new spec and were nothing more than bridged solutions. With the release of the 3D Rage Pro, ATI goes down in history as the first company to serve up full support for AGP (AGP 2X).
ATI Goes on a Buying Spree

Someone over at ATI got the memo that you have to spend money to make money, and so in 1998, ATI spent $3 million scooping up nearly all of the graphics design assets from Tseng Labs, a struggling graphics company. Among other things, the deal included Tseng's facilities, proprietary designs, and team of 40 engineers. Later that same year, ATI would acquire Chromatic Research, Inc. for $67 million. At the time, Chromatic was involved with producing System-on-a-Chip (SoC) technology for set-top boxes and other CE devices.
The acquisitions helped ATI double its sales from the previous year to CAD$1.15 billion. Moreover, ATI was now the No. 1 graphics supplier in the galaxy.
ATI would make some other acquisitions in the years to follow, including the buyout of FireGL Graphics, making official the company's foray into professional graphics. But it's biggest acquisition might have been for ArtX, which made Flipper Graphic Processing Chips, such as the one used in Nintendo GameCubes. This acquisition would play a role in ATI landing its graphics chip in Microsoft's Xbox 360 consoles.