When Nvidia announced Geforce GRID and linked it with Gaikai back in May, during its GPU Technology Conference, so it was just simply a matter of time before we see AMD in a similar endeavor. Today, AMD announced an investment in CiiNOW, a cloud gaming technology company.

The move is quite justified and considering that cloud gaming is expected to reach US $81 billion by 2016, it is no wonder that AMD wants to have a piece of that cake. AMD, or to be precise, AMD Ventures, has decided to invest in CiiNOW a company that decided to offer cloud gaming solution powered by AMD Radeon graphics. To make things worse, CiiNOW was started with initial funding from Nvidia, Foundation Capital and Alcatel-Lucent.

CiiNOW offers cost-effective, end-to-end solution includes the full suite of required hardware and software components. CiNOW delivers a high-speed, low latency streaming solution with up to eight HD streams per server blade, and up to 272 HD streams per server rack for HD-quality game streaming.

CiiNOW has also announced the general availability of its gaming solution which provides a new high speed platform powered by AMD Radeon graphics. Of course, CiiNOW is simply a technology provider and we are yet to see which cloud gaming service providers will use this platform.

You can check out more about CiiNOW here.