Compaq prefers Alpha to Merced

Compaq has apparently stated that it prefers Alpha to Merced since Alpha is half the price for more power. The same article reports that the 600 Mhz EV6 which will be appearing later this year will integrate FX32 will integrated in its "kernel". (Do they mean on the chip or in the OS?) Intel has already reacted claiming Compaq is still in the fold... but independent observers believe Compaq's trying to differentiate itself before it is relegated to "just another OEM".