Japanese IT giant NEC has been dumping stock, according to Cray Research, after securing a contract to supply weather forecasting supercomputers to America's National Science Foundation.
US-based Cray failed to win the business and has filed a complaint accusing NEC of swallowing a $65 million loss by selling four SX-4 computers for the price of one.
NEC denied Cray's allegations, and said that the company had overestimated the costs incurred in the deal.
This is the first time that a US government agency has bought a Japanese supercomputer and the decision has caused much concern at Cray.
The contract has been valued at $13 million to $35 million by NEC. Cray said NEC would be paid $80 million if it were playing fair.
Cray's action will put further strain on trade relations between the US and Japan. The US government has already been putting pressure on the Japanese public sector to buy more US IT equipment.
NEC said the supercomputer contract has been hijacked by the Clinton administration for political reasons as the run-up to the next presidential election gathers momentum.
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