Silicon Graphics Inc. is putting the finishing touches on a broad cross-licensing agreement with Intel that will allow the struggling computer maker to develop custom chips inside its Intel-based machines to enable faster performance and better graphics than competing models. In return, Intel will be able to design its own graphics technology into future chips without fear of lawsuits from SGI.

Meanwhile, SGI plans to concentrate its efforts on producing new computers called Visual PCs and spinning off its MIPS microprocessor unit into a subsidiary that might eventually be a separate company.

http://www.sgi.com/http://www.intel.com/

(Source: Wall Street Journal 13 Apr 98)