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AMD's Opteron, a chip that can run 32-bit and 64-bit x86 code, is very popular and is installed in enterprise servers from Hewlett-Packard (HP), IBM, and Sun Microsystems. The Opteron followed Intel's introduction of Intel's Itanium, a 64-bit chip that is not compatible with Intel's 32-bit chips and cannot run software written for the x86 standard without compilation. AMD began its push into the market in 2001 with the Athlon NP chip, which often benchmarked with a 10%-20% performance advantage over Intel's Xeon, but would not have been able to compete with Intel. However, Opterons support for both 64-bit and 32-bit processing greatly increased customers interest in chips from AMD. Intel has been putting money into development and marketing of Itanium since the early 1990s and had made the decision that adding 64-bit extensions to its 32-bit chips would not be a good long term approach. Intel has now decided that it will add 64-bit extensions to 32-bit Intel Xeon processors, in spite of the possibility that doing so could slow Itanium sales. Ajay Malhotra, general manager of enterprise marketing and planning at Intel, states that any spending that is moved away from RISC system purchasing will very likely move to Itanium, not to Xeon with extensions and not to Opteron. Intel shipped over 100,000 processors in 2003, while AMD shipped just over 65,000 Opterons in 2003, based on numbers from Mercury Research.
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