Microsoft Trial: Gates Asked Sanders To Testify

Advanced Micro Devices Microsoft

In his testimony during the trial between Microsoft and nine dissenting states and the district of Columbia, Sanders confirmed that Gates telephoned him on Feb. 8, the last day for Microsoft to contact its prospective witnesses, to ask for a "personal favor."

The favor Gates requested, Sanders said, in written and verbal testimony, was for Sanders to testify as one of Microsoft's witnesses at the antitrust penalty trial here.

Sanders said he initially demurred, noting that international business travel and a meeting with AMD's executive management were imminent.

Howard Gutman, an attorney arguing for the nine states that are pressing for tougher sanctions against Microsoft for anticompetitive behavior, questioned Sanders about the specifics of the telephone conversation, notably the weight Gates put on Sanders' testimony.

Gutman asked Sanders: "But Mr. Gates said it was really important" that Sanders testify. "Yes, something to that effect," responded Sanders, who recently stepped down as AMD's CEO.

Upon further questioning by Gutman, Sanders said Gates had described during the call the dissenting states' proposed remedy as "crazy."

Pressed by Gutman for further specifics, Sanders replied with some irritation: "I am not a tape recorder." But he affirmed that Gates did use the word "crazy" to describe the remedy currently under consideration and said that the states' remedy as described by Gates "would not let Microsoft innovate."

Sanders used the conversation with Gates as an opportunity to bring up the issue of Microsoft's support for Hammer, AMD's next-generation, 64-bit processor.

"You said you wanted to talk [to Gates about going public with support for Hammer," Gutman said.

"Yes," Sanders replied.

Gutman continued: "You said it was important to you that Microsoft support Hammer. You reminded Mr. Gates that AMD has asked for [a public affirmation of Hammer support a year ago."

According to Gutman, when Sanders told Gates he had a working version of Hammer to show him, Gates said, in effect, "Have your guys talk to my guys."

Sanders stated that the exchange was accurate and added that he had asked Gates to hold AMD archrival Intel to "the same standards he had held us to," meaning having to show Microsoft a working version of Intel's own forthcoming 64-bit processor, code-named Yan Hill.

AMD claims Hammer will be the first and only 64-bit processor for x86 computing, providing a smooth migration path to the 64-bit software of tomorrow while preserving the billions of dollars of today's 32-bit software applications.

Sanders testified that he had also confided to Gates his fear that Intel would "squash" Hammer by beating AMD to the punch with the Yan Hill news.

Sanders' ambition to capture "half" of the market for Windows compatible chips also figured in the phone call with Gates, according to the testimony. AMD currently owns about 20 percent of that market, according to some observers.

In his February deposition, Sanders said he'd "hoped [Microsoft would give credence to our [processors as a viable alternative to Intel and recognize that in my words Intel was over."

Microsoft has still not come out with public support for either Yan Hill or Hammer, Sanders confirmed.

Microsoft next expects to call as a witness Kevin Murphy, a University of Chicago economist, Monday afternoon.