This went across the wire today.
Gateway picks Transmeta chips for AOL devices
SAN DIEGO, May 30 (Reuters) - Gateway Inc. (NYSE:GTW - news), the No. 2 U.S. direct seller of personal computers, said on Tuesday it would use a processor and an operating system from Transmeta Corp. in the Internet-access appliances it is developing with Web service provider America Online Inc. (NYSE:AOL - news).
The announcement is the latest example of how computer makers are breaking away from the standard PC setup of chips supplied by Intel Corp. (NasdaqNM:INTC - news) and Microsoft Corp.'s (NasdaqNM:MSFT - news) Windows operating system.
Gateway, which took a stake in Transmeta last month, said it would use the Santa Clara, Calif.-based company's Crusoe chip and its mobile version of the Linux alternative operating system. It cited the chip's longer battery life, smaller size and lower operating temperatures.
Internet appliances, which are lighter versions of the PC designed for specific uses such as Web surfing, are designed to sit on kitchen counters or desktops and eventually be carried around the home as wireless devices always connected to the Internet.
Transmeta, which developed its chip design in secret and unveiled the system in January, was founded by former Sun Microsystems Inc. (NasdaqNM:SUNW - news) hardware designer David Ditzel, Microsoft co-founder Paul Allen, financier George Soros, Deutsche Bank AG and others.
Last month Transmeta said it had raised an additional $88 million in financing from PC makers such as Gateway and Compaq Computer Corp. (NYSE:CPQ - news), as well as other computer makers and Taiwanese manufacturers.
Ditzel said in a statement, ``At our launch in January, we promised Crusoe would usher in a new world of mobility. With their innovative approach to Internet Appliances for the home, Gateway and AOL are playing a significant role in moving that vision forward.''
The appliances will automatically run a customised version of AOL's Internet service, which will display Web pages and include features such as e-mail and personalized information. |