Advanced Micro Devices just lost some more bragging rights in the computer-chip race. The company has been replaced as DreamWorks Animation's microprocessor supplier by non other than their primary competitor, the world's largest chip maker, Intel. AMD had inked a three-year deal with the Shrek movie studio in 2005.

"We are now converting exclusively to Intel," DreamWorks CEO Jeffrey Katzenberg told Bloomberg News. "It's a much more ambitious program, and we need the capabilities of Intel to achieve it."

The ambitious program to which Katzenberg refers to is a shift to "stereoscopic 3D" film production, occurring next year.

But AMD doesn't consider itself out of the running yet. "We look at these things as cyclical and that the opportunity will present itself again in the future," said company spokesman John Taylor.