NY Times: Gateway and AOL Bypass Industry Stalwarts on Components

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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