To many this was largely expected since ATI, which is now owned by AMD, collaborated with Nintendo on developing a GPU for the Gamecube and the first generation Wii.
The press release was rather short on technical details, only stating that the Wii U would contain a custom "AMD Radeon HD GPU" which provides "high-definition graphics support; rich multimedia acceleration and playback; and multiple display support".
Some of the more plausible rumors suggest that the GPU found in the Wii U will be based on AMD's R700 GPU architecture, though this is far from being confirmed.
IBM is said to be providing a 45nm PowerPC based CPU. The Wii U is expected to be released in 2012.
source: 2DayBlog.com
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