In July 1980, IBM met with Microsoft's Bill Gates in talks to write an Operating System for their new secret Personal Computer (PC). The secret plans were Project Chess, Codename: Acorn. This project was manned by twelve engineers, led by William Lowe.

On August 12, 1981, IBM's new computer was released, renamed simply the IBM PC. This computer ran on a 4.77mhz Intel 8088 microprocessor, with 16kb of ram, either 1 or 2 floppy disk drives, and an optional color monitor.

What was so groundbreaking about this computer is that it was the first to be marketed toward the general public, and distributed by popular stores such as Sears and Roebuck. The price was quite expensive at the time, starting at $1,565. But, it was the first step in an area unmatched by growth.

Interestingly enough, four months after the IBM PC was released, Time Magazine named it "Man of the Year." I have a feeling its artificial intelligence wasn't quite that good though.