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Transmeta working with IBM?

Alledgedly Transmeta technology is in IBM's latest multicore PowerPC chip In related Transmeta news, I have heard from a second source that Transmeta's x86 has legacy features such as real mode taken out... unlike Merced that will contain x86 compatibility, giving Microsoft the opportunity to add more thunking! (just what was needed to build a stable OS). And for those that argue that anything published in The Register is wrong, perhaps they should cast their eyes on to this C'T article.
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Transmeta working with IBM?

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