SAN FRANCISCO, Jan. 22 (UPI) -- U.S. computer maker Sun Microsystems Inc. will buy computer chips for use in its server systems from Intel Corp., the companies said Monday.
Under the agreement Sun will buy Intel's new energy-efficient Xeon microprocessors in its fast-growing line of x86 servers, Sun Chief Executive Jonathan Schwartz and Intel Chief Paul Otellini said at a joint San Francisco news conference.
As part of the deal, Intel agreed to endorse Sun's Solaris operating system and Java software.
The companies will also work together in engineering, design and marketing, the chief executives said.
The agreement is seen as a blow to Intel rival Advanced Micro Devices Inc.
Sun, of Santa Clara, Calif., has used AMD's Opteron chips in its servers exclusively in recent years.
Sun will keep using AMD chips in some of its computers, the companies said. Competitors Hewlett-Packard Co., International Business Machines Corp. and Dell Inc. also have dual-supplier strategies.
Sun shares fell 5 cents or 0.87 percent to $5.72 a share in late-afternoon Nasdaq trading. Intel shares rose a nickel or 0.23 percent to $20.87. AMD shares fell 31 cents or 1.75 percent to $17.42.
