Voodoo Extreme is reporting that ATI has announced that it is buying BitBoys for $44 million (US dollars I presume).
This announcement is made more interesting because Hybrid Graphics, which BitBoys have a very close relationship with, announced that it was being acquired by Nvidia earlier this year. Bit Boys even uses Hybrid Graphics software drivers (or at least they did at some point) and members of both have worked on technology together (notably the delay stream paper from SIGGRAPH a few years ago).