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NY Times: Gateway and AOL Bypass Industry Stalwarts on Components

May 30, 2000, 10:38 (1 Talkback[s])

"Breaking ranks with the powerful "Wintel duopoly," based on Intel hardware and Microsoft software, Gateway and America Online plan to announce on Tuesday that they will use a processor from an upstart Silicon Valley chip maker and a version of the Linux operating system in a new Internet home appliance scheduled to go on sale later this year."

"The decision is a big victory for the Transmeta Corporation, a chip design company in Santa Clara, Calif., that has developed a microprocessor intended to be a low-power and inexpensive alternative to Intel's microprocessors."

"Transmeta, which was founded five years ago by David Ditzel, the former Sun Microsystems hardware designer, with backing from George Soros, the financier; Paul Allen, the Microsoft co-founder; Deutsche Bank; and others, said last month that it had raised an additional $88 million in financing from Compaq Computer, Gateway, Samsung, Sony and a number of Taiwanese manufacturers."

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