AMD suffers further Gateway blow

Will ditch non-Intel chips

Chip manufacturer AMD suffered a further setback over the weekend after Gateway said it would shift to an Intel-only policy. According to a report in the Wall Street Journal, it will begin to phase out K6-2s and K6-IIIs from its platform. Earlier this year, Gateway declined to use AMD's Athlon K7 in its products. That is believed to have happened after Intel offered Gateway more favourable deals on its microprocessors, estimated to be worth a cool $20 million. AMD has a number of top OEMs using its microprocessors, including Compaq and IBM. Gateway was understood to have been preparing the launch ofan Athlon machine before the overtures of Chipzilla convinced it of the errors of its ways. ® Related story Gateway walks away from Athlon

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