Chipmaker AMD has had to raise more than $1.8 billion or face running out of money by the end of the year.

The company, which is locked in a price cutting war with Intel, said the money will be used to pay off $500 million of a $2.5 billion loan it took out to buy graphics chip maker ATI Technologies in October.

Analysts are warning that the loan is a stop-gap measure likely to get the company through the year and will not solve the company's underlying financial problems.

Intel has been doing extremely well againsts AMD. Its chips are often better and and cheaper to make. Barcelona can change it and save the day for AMD.

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