In [[1994]] [[Apple]] and Exponential signed a joint development agreement and later that year they formed an agreement with [[Hitachi]] which agreed to manufacture their chip at their [[BiCMOS]] foundry. By [[1996]] with their chip just months away from [[engineering sample]], Apple's CEO, then [[wikipedia:Gil Amelio|Gil Amelio]] extended their agreement to gain exclusive rights to the chip for the first nine months of [[volume production]]. The deal included a $5 million prepayment - a payment Apple never delivered.  

In [[1994]] [[Apple]] and Exponential signed a joint development agreement and later that year they formed an agreement with [[Hitachi]] which agreed to manufacture their chip at their [[BiCMOS]] foundry. By [[1996]] with their chip just months away from [[engineering sample]], Apple's CEO, then [[wikipedia:Gil Amelio|Gil Amelio]] extended their agreement to gain exclusive rights to the chip for the first nine months of [[volume production]]. The deal included a $5 million prepayment - a payment Apple never delivered.  

By February of [[1997]], the X704 was ready - hitachi delivered Exponential over 7,000 410-MHz chip. Apple was in a fairly bad shape at the time, with massive layoffs on the horizon; just a month later they acquired NEXT software for $430 million, bringing back Steve Jobs as an advisers and replacing key Apple upper management. Around the same time, Exponential displayed an X704-based machine to journalists at the LA [[wikipedia:Dreamworks|Dreamworks Studios]], running complex 3D animations and wowing the audiences. Following Exponential progress [[IBM]] announced a new chip: the {{ibm|Mach 5}}; the chip didn't actually arrive until 5 months later. While clocked at only 250 MHz, its considerably larger cache and wider datapath promised to match X704's performance. IBM chip was also to be manufactured on their new [[0.25 µm process]] (compared to X704's [[0.5 µm]]). Apple eventually went with IBM's chip but only for a short time as by 1998 they went over to PPC 750 series. In a meeting that took place on March 3 1997 Apple told Exponential that with the lay off of thousands employees they will no longer be able to design a system around the X704 chip. This decision had devastating consequences for Exponential which relied on Apple's deal which would've meant hundreds of millions of dollars in revenue.

By February of [[1997]], the X704 was ready - hitachi delivered Exponential over 7,000 410-MHz chip. Apple was in a fairly bad shape at the time, with massive layoffs on the horizon; just a month later they acquired NEXT software for $430 million, bringing back Steve Jobs as an advisers and replacing key Apple upper management. Around the same time, Exponential displayed an X704-based machine to journalists at the LA [[wikipedia:Dreamworks|Dreamworks Studios]], running complex 3D animations and wowing the audiences. Following Exponential progress [[IBM]] announced a new chip: the {{ibm|Mach 5}}; the chip didn't actually arrive until 5 months later. While clocked at only 250 MHz, its considerably larger cache and wider datapath promised to match X704's performance. IBM chip was also to be manufactured on their new [[0.25 µm process]] (compared to X704's [[0.5 µm]]). Apple eventually went with IBM's chip but only for a short time as by 1998 they went over to PPC 750 series. In a meeting that took place on March 3 1997 Apple told Exponential that with the lay off of thousands employees they will no longer be able to design a system around the X704 chip. This decision had devastating consequences for Exponential which relied on Apple's deal which would've meant hundreds of millions of dollars in revenue.