Chip giant AMD recently acquired the fledgling Austin-based startup Nitero. The startup is known for building 60GHz wireless chips which have huge potential application for streaming virtual reality and augmented reality contents from desktop computers to headsets.

According to Tech Crunch, Nitero's initial course of business is towards designing 60GHz wireless chips intended for mobile devices. However, the recent boom of the virtual reality and augmented reality market have convinced the startup to pivot its focus towards building chips for VR headsets.

The financial terms of the deal were not disclosed. However, reports confirmed that AMD acquired all of Nitero's intellectual property as well as key talents from the latter's engineering team as part of the deal.

With the unprecedented rise of virtual reality, key pioneering companies are still trying to find ways on how to cut the wires on VR headsets. Virtual reality streams massive amount of data that wireless communication between the VR headset and desktop computer are not conducive.

This is where Nitero steps in. The startup was able to develop a new technology that allows low-latency data transfer between a desktop computer and VR headset. Nitero promises that its technology will cut the delay between the user's movements and what they actually see in the headset.

Low latency data transfer is important, almost fundamental when it comes to providing good virtual reality experience. Too much lag and low refresh rate can cause users to suffer headaches and nausea. Moreover, elimination wires and using wireless communication, something that Nitero promises, will eventually solve one of VR's biggest problem- annoying and obtrusive wires.

"Unwieldy headset cables remain a significant barrier to driving widespread adoption of VR," AMD chief technology officer Mark Papermaster said. "Our newly acquired wireless VR technology is focused on solving this challenge."

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