AMD could very easily have purchased NVIDIA with the funds they have. It is the matter of how they purchase the company. While and outright buy out is expensive and alternate route is to purchase the company through stock. If hold the most shares in a company you can eventually have total control.

Course they would have. NVIDIA is owned by stockholders. The company wants what's best for the Stockholders - & if they were to make a mint by selling to AMD then that's EXACTLY what they would have done. Companies don't run on principle.