Cray to Build Supercomputer for $188 Million; for Use on Blue Waters Project

Cray, the U.S.-based supercomputer firm and the University of Illinois have finally entered into a $188 million contract to build a supercomputer for the Blue Waters project. Cray came on board after IBM withdrew from the venture three months ago.

Cray, on Monday, confirmed the supercomputer will be installed at the University of Illinois National Petascale Computer Facility. The installation process will be completed in phases over the next nine months.

About 2012's revenue collection, Cray said it will be somewhere between $340 million to $360 million. This figure also includes Blue Waters system which might add around 40 percent of annual revenue. Whereas, analyst are expecting $320 million revenue in the year 2012, as reported on Reuters.

The company stated earlier that gross margin for 2011 was expected to be in the range of 35 percent.

Basically, the Blue Waters project is focused on delivering a supercomputer which will be capable of doing 1 petaflop, thus, making it one of the most powerful machines in the world.

IBM did not go ahead with this project as they felt it would cost more than they financially expected along with additional costs for various technical support.