Silicon Graphics Inc is said to have a new cross-licensing arrangement with Intel Corp under its belt that will ensure its forthcoming line of iAPX-86 Visual PCs can out-perform competitive systems when they are launched sometime later this year. Using its advanced 3D technologies, SGI will develop custom graphics chips for use in conjunction with Intel CPUs in the Windows NT-based Visual PCs. Intel will be able to embed the graphics functionality within future versions of its chips. The Wall Street Journal reports the agreement will be just one component of a strategic makeover of the ailing graphics and supercomputer company to be outlined by new CEO Rick Belluzzo in New York today, Tuesday. As already reported (CI No 3,387) there’s widespread anticipation that SGI’s MIPS Technologies Inc RISC unit will be spun out into a majority-owned subsidiary that could one day become a separate company with its focus on developing chips for embedded markets. The roadmap for developing future generations of MIPS CPUs for SGI’s own systems is also being overhauled, with some MIPS engineers said to be working on three new generations of the part while the majority turn their attention to the embedded strategy. One as-yet unreported aspect of the strategy will see SGI begin a new campaign targeted at the well-connected home PC marketplace with its own line of MIPS- based network computers. It’s supposedly got deals with Netscape and Oracle in hand for software. The MIPS chip is already being used widely in third party NCs and set-top devices. The company also expects to use some of its $700m cash pile to invest in other companies. Meantime, the company has given SVP chevrons to John Vrolyk – the company has nine SVPs – who will oversee the Origin and Cray server strategies as SVP server and supercomputing business. Vrolyk, formerly general manager and VP, reports to EVP and former Cray CEO Robert Ewald.
