The Forbes article cites a former AMD employee as revealing the chip maker is working on a new Sony system and states that CEO Rory Read, who was appointed in August 2011, is charged with making “sure AMD doesn’t screw up its slate of new products—which includes a hush-hush effort to put its graphics chips in Sony’s still-unannounced new game console—and shake off the once scrappy company’s years-long funk.”
AMD currently uses a custom ATI Xenos chip to power the Xbox 360’s graphics, but for the PS3 Sony opted to use NVIDIA’s GPU based on the company’s G70 (NV47) architecture.
One of the most interesting things about the rumour is that this is the first piece of concrete evidence that Sony Computer Entertainment is indeed working on a new console. Rumour has it that Sony will use the platform of E3 Expo in June to reveal its next-generation system. We guess we'll have to wait till then to find out the official technical specifications.