Sheepish former AMD executives have spilled the beans on the failed deal to Forbes.
They said that Apple gave its "Llano" chip a "close look" for a new MacBook Air model last year, but ultimately decided not to go with the processor because too many of its parts were faulty.
New "Fusion" processors from AMD had a shot at upstaging Intel by making their way into Apple's popular MacBook Air notebook last year.
Jobs' Mob thought that the combined CPU and GPU had legs and gave it some serious consideration for use in its thin-and-light portable.
But the early working samples of the chip were delivered to Steve Jobs' desk too late and too many of the parts ended up being faulty.
AMD had proposed a low-power processor named "Brazos" for a revamp of the Apple TV box, but Apple decided that would be a bad idea. It is not clear if the Llano experience had tempered its view of AMD.
"Brazos" went on to make inroads in the netbook industry and reportedly kept the company afloat.
One employee said that if it had not been for Brazos, AMD wouldn't be in business.