IBM to license chip tech to fight flagging revenues

Big Blue enters into agreements with Google, Nvidia, others

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IBM to license chip tech to fight flagging revenues IBM announced it will license its Power Systems technology. (Getty Images)
By  Stephen McBride Published  August 7, 2013

IBM has entered into partnership with a number of fellow technology companies to licence its Power chip designs in an effort to grow market share, Reuters reported.

The collaboration, to be called OpenPower Consortium, involves Google, Nvidia and other companies building data centre infrastructures for cloud hosting, including servers and storage units, using IBM’s chip designs.

IBM hopes the move will help it gain ground in the chip market, which is currently dominated by Intel Corp and ARM Holdings.

IBM said its Power Systems hardware and software would be open to development and that it hoped to open up the technology to other manufacturers. The division’s revenues dipped 25%, year on year, in the second quarter.

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