ARM processor startup Calxeda has run out of money and shut down. "Carrying the load of industry pioneer has exceeded our ability to continue to operate as we had envisioned," Karl Freund, VP of marketing, and Barry Evans, president, said in a joint statement distributed to the media.

The many-core server pioneer Calxeda said that most of its employees have been already laid off. The startup was one of the first manufacturers of low-power, integrated processors that use the ARM core.

The company said that it failed to hold on till the emerging market of low-power servers could become big enough to ensure its sustainability.

Founded in 2008 by Intel and Marvell engineer Barry Evans, the company was one of the first to introduce a power-efficient ARM processor for data centers.

The company's chips had been slated for Hewlett Packard's Moonshot servers, which now use power-efficient Intel Atom processors.