HP Reportedly to Use AMD’s Opteron Chip

Hewlett-Packard Co. will begin using Advanced Micro Devices Inc.’s Opteron chip in server computers, said people familiar with the matter, adding momentum to AMD’s challenge to industry leader Intel Corp. in supplying the lucrative market for corporate computers.

The move is significant because Palo Alto-based HP has been Intel’s primary partner in rolling out Itanium, its competing 64-bit processor, a chip credited as a sharp advance in computing power but which has been slowed in the market by its higher price.

Sunnyvale, Calif.-based AMD has staked its future to the success of its rival 64-bit technology, including Opteron, and analysts said HP’s decision to use AMD’s processor underscored the growing strength of the market for low-end servers.