Calxeda Shuts Down

In a blow to Austin's electronics and startup industry, low power server processor developer Calxeda shut down its operations Thursday. According to Calxeda, the company has entered into a restructuring process. Reports says the company ran out of capital to support its development of energy efficient, low power chipsets for the server market. Calxeda--which started life as Smooth-Stone--had raised over $110M in funding from such investors as Advanced Technology Investment Company, ARM, Austin Ventures, Battery Ventures, Flybridge Capital Partners, Highland Capital, Texas Instruments, and Vulcan Capital. The firm had raised $55M in funding in October of last year. The firm had hoped to revolutionize server computing by using ARM-based processor cores to replace the inefficient, power hungry chips currently used in data centers.