The company started operations in 2008under a name Smooth-Stone. They started with the idea of ARM chips as low-energy and cheaper alternative to Intel's and AMD's x86 architecture, which still prevails in most servers. During the 2011 they presented ARM chips designed for low-energy servers with up to 480 cores. These chips are used in servers used by Boston Limited company and should be used in HP's Moonshot system.

However, the company failed to find additional sources of funding, and had decided to close the company in order to preserve the equity. Most of the 130 workers will be laid off and small part of them will stay in order plan and carry out possible sale of Calxeda's intellectual property.

[Ed - Calxeda also came under fire because of a few of their performance comparrisons. In one they tried to claim an efficiency advantage over Intel when they did not have the Intel server they were comparring in the lab. Although we know it was not intended to be misleading, it also was a very bad move on their part and it certainly backfired on them. There is also not a large demand for ARM based servers at the moment which makes it difficult to stay in business.]

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