Gateway shuts out AMD

Leading PC maker Gateway reportedly will no longer purchase processors from AMD after its current models are replaced.

Gateway, the number one U.S. supplier of home PCs, released its first AMD-powered PC last February, but recently spurned the Sunnyvale, Calif., chip maker's latest high-performance Athlon chip.

Sources say AMD believes it lost the Gateway business because rival chip maker Intel began offering Gateway more favorable terms than it had previously. Neither Gateway, Intel nor an AMD spokesman would comment.

AMD's loss comes as Intel has mounted a strong comeback supplying consumer-PC manufacturers with its Celeron microprocessors.

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