Legendary Chuck Peddle, Inventor of The Personal Computer
Written by Ian Matthews January
Last Updated May 29, 2007
is an inventor, engineer and entrepreneur of highest class. His rich
early history mirrors that of Commodore; hugely important successes
through the 60's 70's and early 80's, followed by late 80's and 90's
turmoil. Today he, like
Commodore, is in an exciting new phase developing fresh technology
I have been fortunate enough to interview
Chuck at length several times in early 2006 and that is where the bulk of
the content below came from. He is a quite a character and quite a
contrarian, which likely explains his success. If he 'followed the
pack' he would not have invented or been part of so many important
CHUCK'S A NEWFIE! (WELL SORT OF)
Even Chuck's family history is interesting. Like Commodore, Chuck
Peddle has Canadian roots. His family emigrated from the UK and
Newfoundland of all
places. Chuck proclaims with a smile "We're Newfie's" He
still contacts people named "Peddle" when he visits the
The family name is actually "Piddle", named
after the river that ran through his ancestral town. However,
after moving to Canada, his grandfather discovered that "piddle" is slang for
urinate and so he changed it to Peddle. Newfoundland was hard on the
family as work was scarce and so the the family moved to Bangor Maine,
Chuck graduated as an Engineer, from
University of Maine in 1960 but had only been introduced to Information
Theory (binary & algebraic concepts) in his final year. "I just
fell in love, this is where I was going to spend my life".
His first notable job was at General Electric
in 1961 where he implemented the new concept of
Main Frame computing power and developing the Electronic Cash Register.
But by 1970 GE decided there was not enough money in computers anymore
so they gave Chuck and three colleagues a severance package which they
promptly used to start their own cash register development
While Chucks new team was able to develop
important concepts, like the credit card driven gas pump and the
electronic cash register, they did not have the funding to get product
to market. "It's too bad we did not patent the shit out if it,
because we could have been very wealthy as a result." Chuck had
also decided to marry his partners beautiful ex-wife which caused a
strain. "I just could not stay with the company so we put it to
sleep... we did not kill it."
Chuck interviewed at and was offered a
position with Texas Instruments. He was to "do the Air Traffic
Control system. ...TI had the biggest fastest computer... they were the
top of the industry". He also interviewed with Motorola "...to
build the 6800 which was the lowest end of the industry... where (his)
DEVELOPS THE WORLDS FIRST MICROPROCESSOR
In 1973, Chuck took the job at Motorola under Tom Bennett who needed
help to completing the legendary 6800 microprocessor. Chuck needed the
job and so he made a deal to work for Motorola: he would help complete
the chip and then take the concepts back to his own company. Chuck
not only fixed several key problems with the 6800 but also developed
many of the support chips required to drive it.
is important to note that Chuck believes that the worlds first
microprocessor is not the much ballyhooed Intel 4004 or 8008, "(I am)
not trying to be negative about the guys that did it... they are nothing
more than calculator chips". He believes the worlds first real CPU
is Tom Bennett's 8bit Motorola 6800 "...it's terrible that guy never got
At this time, you have to remember that there
was no such thing as personal computers and most technical staff in
large corporations would not have authority to work on main frames.
As the lead technical engineer, Chuck was often tasked with explaining
the capabilities of this new wonder, the microprocessor, to large
industrial manufactures like Ford and Unisys. After one of Chuck's
one day courses, Engineers were always impressed with the potential for
such a device but at US$300 ($1200 in 2005 Dollars!) would almost always
say it was far to expensive for their application. Chuck started
to asked Motorola's customers the price they thought it would be
possible to put a microprocessors into their mass market products; $25
came up as the magic number.
MOTOROLA SAYS STOP
& CHUCK SAYS "GOTTA GO"
As one might guess, discussing a $25 version of a $300 successful
product, did not impress Motorola management. Conversely, failure
to pursue an obviously improved product did not impress Motorola
engineers. Without so much as a phone call for warning, Chuck received
an ominous formal letter from Motorola management telling him to stop
pursuing a cost reduced version of the then 6800. Most people
would be intimidated but such a formal reprimand but remember that
Chuck's plan was to leave Motorola after he saw the 6800 to fruition.
He seized the opportunity and immediately "...wrote a letter back saying
that (Motorola's) letter was notice of product abandonment..." and that
he "...would not work on that chip for Motorola any more but (he) would
continue to work on it for (himself)".
there are engineering design houses, like RAMBUS, that produce nothing
but engineering concepts and patents, but back then if you were a chip
designer you had to work for a company that actually fabricated the
chips (a "fab".) In 1975, just a few months after Chucks
letter exchange, he took Bill Mensch and five other key Motorola 6800
engineers to work for an old General Electric colleague,
John Pavinen who ran a small "fab" called
(later renamed to
Commodore Semiconductor Group.)
Chuck said he gave the engineers a "..tight list..." of features to
build into the chip along with a fixed die size. To get to the $25
price they need to produce only the instructions that its customers
would required, nothing extra. It contained some of the 6800
concepts but nothing that was patented. It was to be a newer,
enhanced, faster CPU.
THE $25 CHIP
the 1970's, 70% of the industries chip production were defective and
therefore costly garbage. MOS invented a process to correct chips
before they entered primary manufacturing stage and as a result was able
to produce with an astonishing 70% success rate (yield). This obviously
reduced the per chip cost of manufacturing and made the $25 processor a
During our 2006 interview
Chuck explained that selling a dramatically less expensive CPU was not
as easy as it sounded. A few years earlier there had been a high
profile scam involving a company that claimed it could produce mainframe
terminals it would lease for just $10 per month. The company
had went bankrupt in a cloud of scandal after taking millions of dollars
from investors, and blamed the failure on industries inability to
produce cheap chips.
In an effort to drum up interest in the chip they ran an advert stating
that anyone could not only see, but they could buy the amazing $25
microprocessor at the WestCon (Western Electronics Show and Convention)
in 1975. Unfortunately, when MOS arrived at the show they were
told that, in an effort the keep the show 'high brow', exhibitors were
not allowed to sell product at their booths. Chuck quickly rented
a nearby hotel room and had is very attractive wife, sit at a table with
two glass jars full of newly minted MOS 6501's. Little did the
buyers know that all of the chips in the bottom of those jars were
defective. "Image is everything", Chuck says.
MOTOROLA'S ANGER: A
BLESSING IN DISGUISE
In June of 1975, soon after the show, Motorola realized they had turned
their engineers into their competition. Motorola got mad and
sued MOS for infringement of 6800 patents. Chuck said "...there
was no substance to their claims..." but it scared the old line industry
management at Allen-Bradley - the then owner of MOS Technology.
"As soon as lawyers got involved, they wanted out." said Chuck. As
a shock to everyone, Allen-Bradley walked away from MOS and basically
gave it to the existing MOS management team. "It was a leveraged
buy out and I probably had some ownership at some point but it was all
lost in subsequent transactions."
A STAR IS BORN: MOS 6502
may not have had a solid legal case but they did have something that MOS
did not, money. It did not take long for Chucks team to kill the
6501 and in September of 1975 they replaced it with non-pin compatible
version the called the
6502. "(The 6501) was never supposed to be a real product
anyway... it was just for demo's." The suit dragged on a for a few
years and MOS eventually settled the claims with a $200,000 payment to
Chuck designed two 6502 trainers call the
(Terminal Input Monitor) and KIM-1 (Keyboard Input Monitor) to teach
engineers how to use this great new microprocessor. Without
intending to, Chuck had built the worlds first single board computers.
Tens of thousands of KIM-1's would be sold to budding engineers in
companies and colleges all the way through 1980.
Over the previous few years Chuck had met with hundreds of computer
enthusiasts, educational institutions and main frame corporate users.
He learned that "...what people wanted was a computer that looked like a
terminal." The concept of the stand alone, fully assembled,
'Personal Computer' was born.
an effort to start sales of the
6502, MOS staff ran though a quick tour
of the US, dropping into see major manufacturing companies like Ford.
On the trip Peddle was told that two young guys working in their garage
wanted some help using the 6502. Steve Jobs and Steve Wozniak were
working on the first Apple and Chuck was happy to lend a hand even
though he did not design the 6500 line for computer use. "...not
in a million years... it was supposed to go into industrial and consumer
products." Little did Chuck know that the computer business would
quickly become the mass market consumer product he was targeting.
THE WORLDS FIRST PERSONAL COMPUTER:
THE COMMODORE PET
Chuck went on to meet with Radio Shack but was unsuccessful at
selling his Personal Computer concept to them.
Commodore was MOS' largest customer as there main product line was
still calculator chips. When the calculator market collapsed in 1975
Commodore decided to buy MOS. All of a sudden, MOS had access
to money and a visionary leader, Jack Tramiel. Tramiel knew about
the 6502 and after a few conversations with Chuck, he saw the future.
However, Tramiel was concerned about developing the product from
scratch. They entered negotiations to buy Apple but would not meet
the $150,000 price set by Steve Jobs and Steve Wozniak. Jack then approved the development of what would become the
Commodore PET. He even promised to pay Chuck a bonus of $1 for
every PET sold. That and so many other Tramiel promises were never
Chuck purchased a little book on how to build
your own television written by the legendary
Adam Osborne and "...Fujiyama Oogi contracted a company to make a
chassis out of wood." Using a
motherboard based on the 6502 processor he designed and built the
worlds first Personal Computer which would later be named the Commodore
PET. Explaining how cutting edge this concept was and how
unprepared they were, Chuck said "The first time we turned it on, the
image was upside down... we got Adam's book out to figure out how to
even wrote the
machine language code to handle the integrated tape cassette that
was used as storage on the PET. "The others didn't ****** work."
Chuck said of his competitions tape systems. Much to the bane of
Engineers who developed Commodore's future computers, like the C64, he
never documented that work. Over the years, several engineers were
assigned to either document that sub-system or re-write but all attempts
failed. Chuck said that a complex web of "...lots of error
detection..." and mechanical instruction meant that "fixing" one thing
always caused some other problem. He was writing code "...while
watching an oscilloscope". Manual tuning made it work.
During our face to face interview with him, it was apparent that that
code is still one of Chucks proudest achievements.
THE BIGGEST DEAL IN COMPUTER HISTORY
To work as a "Terminal" did, the PET needed a built in operating
system and a high level language. At this time, Microsoft's big
product was BASIC (Beginner's All-Purpose Symbolic Instruction Code).
The problem was there was no copy protection and many users just stole
it by making illegal copies. Gates wrote a now famous Open Letter
to the Homebrew Club demanding that they
stop stealing his software.
naturally turned to Micro-Soft and worked with one of their new hires,
Rick Wyland, to develop a version of BASIC that could be built into
hardware called a ROM (Read Only Memory). Even though this version
would be difficult to steal Gates was not happy because he was sure
Chuck's concept was not going to be successful. Chuck tells of a
1976 trip to Microsoft's small office, the in Albuquerque. Gates
had told Wyland to "...just get rid of it... he thought is was a
waist of time..." Chuck's explains "Gates was not a visionary..."
and the quickly follows up with a respectful "...Hell, who is at 20
years old?". As a result, Chuck made a deal that would become
legend: at that meeting, he negotiated a stunning unlimited usage,
perpetual licence for MS BASIC on ROM for any 6502 based Commodore
computer. Out of respect for Bill Gates, Chuck does not want the
stunningly low price published, but we can say that over the 20 years
Commodore used that licence, it cost them less than a penny per machine.
As part of that deal Commodore could enhance Microsoft's BASIC as long
as they gave the updates to Microsoft.
evidence of Gate's apathy Chuck points out that Microsoft did not even
require their name to be shown anywhere in the product. When you
boot up any Commodore computer manufactured prior to the Commodore
128, the machine will display a simple COMMODORE BASIC screen. Not
until Commodore required a new version of Microsoft Basic, for their
non-6502 based Amiga, was Microsoft able effect any change to the
original contract. Part of the Amiga deal required all future
computers models, including the soon to be released 128, to use the the
Microsoft name in the boot up screen.
In January of 1977 Commodore showed the worlds
first Personal Computer, the Commodore PET, at the West Coast Computer
Faire. Chuck had beat Apple by six months and Radio Shack by four
Chuck tells a great story about trying to sell
the 6502 CPU's to Atari. Atari was so worried about industrial
espionage that they sequestered their top engineers to a remote complex
on a dirt road, several hours from Los Angeles. Chuck packed he
and his wife for brief holiday and made plans to stop in to see this top
secret Atari think tank on the way. Atari's Steve Mayor was
working on three options for their new machine and one of designs called
for a 6502, an IO chip and a custom chip. Atari wanted him to
produce the 6502 and the IO chip for just $12. By this time MOS'
production cost on those two chips was just $4 and so it was easy to
agree. There only problem with the deal was the tight 'Non
Disclosure Agreement' "...the kind that would punch out your first and
second children. I knew what (Atari) was doing but could not say
anything." One of MOS' projects was going to eclipsed by Atari.
Chuck simply told some MOS staff to "give up, start again" but could not
tell them why. Commodore's CEO, was famous for breaking his contracts
and when I pressed Chuck on this matter I was surprised to here him say
"Jack Tramiel never stole anything from anybody to my knowledge". The
Atari 400 and 800 were announced in December of 1978.
Tramiel was an exceptionally tough man to work for and well was know
for yelling fits dubbed "Jack Attacks". Chuck quit Commodore twice
in the late 1970's. Each time he walked away from potentially millions of
dollars in stock options and unpaid promises (like $1 for each
PET). The first time, he went to work for Apple as what was billed
to be their Lead Development Engineer. In an April 2006 interview
with www.commodore.ca, Bill Mensch
explained "Chuck didn't do well with structure... he clashed at Motorola
and at Apple." Apples culture was cold and
regimented; not well suited for a man of action like Chuck and after a
few months he returned to MOS / Commodore. The last time Chuck
returned to Commodore, Tramiel set up an R&D facility in Moore Park, Los
Gatos, California so he could lead a small group of R&D engineers.
MUTINY IN LONDON
In these days before the IBM PC, Chuck spearheaded a group of Commodore
managers who wanted to replace the aging fleet of PET computers with a
line of real business machines. At a fateful April 1980 meeting in
London England, Tramiel was late and the group made the mistake of
openly considering splitting the company into to parts, a consumer
division and a business division. Chuck knew that Tramiel's heart
and expertise was in the consumer line and Chuck felt it was only
natural that he would lead the business line. When Jack arrived
and found out what was going on, he wrongly interpreted the meeting as a
mutiny. "Or maybe it was?" says Chuck. Jack was furious and
Chuck was going to take the brunt. The next day Jack ordered the
Moore Park facility closed and the staff to be relocated to Commodore's
head office in Pennsylvania. Chuck had had enough and quit for the
time Chuck had stayed long enough to accrue a small fortune in Commodore
stock options and used some of that wealth and his industry clout to
start a new venture. "Sirius System Technology" was to design and
manufacture a real business desktop computer. Chuck took many of
MOS' / Commodore's top engineers and one of Commodores financiers, Chris
Fish, with him. Jack was not amused and began litigation against
Chuck effectively claiming that Sirius was stealing Commodore patented
technology and that he personally had not earned his stock options.
By the early 1980's Tramiel's Commodore was so
'law suite happy' that a joke inside the company was that the legal
department had become a profit center. Chuck explains "The
strategy is just to slow you down... give them time to catch up".
Chuck was sure he was in the right but in the end Sirius lost to
Commodore's enormous legal power and was forced to pay fines.
Worse, Chuck personally had to return his Commodore stock options.
In a 2005 interview for the book
The Spectacular Rise and Fall of Commodore, Chuck said of Tramiel
"(Jack) destroyed me, he destroyed my family, he did all kinds of
wanted to do what Commodore had failed at: have a real presence in the
US. Coincidentally Victor Monroe, a major player in the
calculator business and told Chuck "we want to play; we think computers
are going to take off." Sirius needed money and distribution so
they made a deal to sell machines in US exclusively to Victor.
Victor was to order a set number of machines on a schedule.
Sirius was a $5000 16Bit business computer with a hard drive, manufactured
Scotts Valley, California. Click to the left for an advertisement
shown the range of pricing. Every key
could be programmed and fonts could be changed. At a time when many people still did
not know what a computer really was, Chuck had envisioned storage
requirements that we take for granted today. Again, Chuck worked
with Microsoft to develop his 16 Bit power machine. Unfortunately
Bill Gates did not see a need for a hard drive and after months of
disagreement, Sirius wrote some of the code to support Hard Drives and gave it to
Microsoft. That was the major improvement in MS-DOS
used a 16Bit Intel 8088 CPU
(with support for an optional Intel 8087 math co-processor) and had a
of drive configurations. Both single (620Kb) or double sided
(1.2MB) floppy disks and 10MB and 30MB hard disks could be shipped.
It even had four internal expansion ports, two RS232 (com) ports and
powerful graphics,. The machine had either 128K or 256K of RAM
from the factory but could upgraded to a massive 896KB. It ran
Kildal's CP/M-86 which was what most business applications were
built on at that time and MS-DOS 1.2. A more complete specification is
For a sales force, Sirius plundered nearly the
Mannesmann Tally team. That team put together an advertising
campaign that "... won awards and put us on the map... a phenomenally
successful campaign". The team told him "People relate to
animals. Computers are mysterious." The paper ad's showed
"...a picture of a dinosaur with a caption like 'things that don't
adapt, die'...". The following pages showed a series of friendly
animals linked to the Sirius features. For instance a picture of
an Elephant would have a tag line relating to the Sirius' large memory
capabilities. The problem was that it was very expensive. "We bet
the company." Chuck recalls, still with a tone of nervousness all these
again Chuck was first, if only by a few weeks. When IBM released
its $3000 PC (without a hard drive) in September of 1981, their
marketing strategy was to push "compatibility". Sirius sold their
machine as a
Victor 9000 in North America and a Sirius S1 in Europe where it
received some commercial success as IBM did not release their PC until
the fall of 1982 because of manufacturing delays. IBM had been pushing
nothing but compatibility and the Sirius wasn't. "We just ran out
of time to get it done. No... I just didn't make it a priority."
Chuck had just signed an important deal with GM when he had his final
meeting with Ford. "He said to me, 'there is no question it's better;
its just not better enough." This was the beginning of the end of
THE SECOND WORST DECISION
"We got a call from Victor saying, we can't take any more... you guys
have to downsize". Victor was (and
is) a calculator company backed by the
which just could not expand their business model to include computers.
Victor was much larger than Sirius. "I made the second worst
decision of my life... We decided to buy Victor from Walter Kidde" Chuck
says. Sirius sold off the Victor calculator business but
"...incorporated as Victor because people buy stock in names they know".
"Sirius (was) burning up Europe... killing the
(IBM) PC" Chucks states indignantly. In addition to a solid sales
record Chuck points out that Sirius "had a paid up Microsoft licence and
computer parts other companies had shortages of".
November of 1982, Byte Magazine said "...the chief designer of
Victor's machine is not a novice but Chuck Peddle, a founder of the
microcomputer industry who knows how to bring maximum performance to the
market at an affordable price". By March 1983, IBM caught up when
they released the legendary XT. That year the company renamed
itself "Victor Technologies" and fired 600 employees.
In the second quarter of 1983 they arranged
for bridge financing from a investment banker. Chuck ended up with
$3 million worth of stock which caused "greed over good sense. We
were to take the company public too early..." Kidde convinced
Sirius' CFO to take a loan to pay off the bridge money and when that
loan was unexpectedly called early, Sirius was instantly insolvent.
On December 17th 1984, bankrupt
Victor Technologies sold their assets for $28 million to the
Stockholm based company Datatronic which, ironically, was a successful
European Distributor for Commodore at the time. Datatronic
continued to develop and produce the Sirius for some time. Today
the Sirius still has a
Sirius Users Group and
THIS page provides a complete Victor / Sirius technical manual.
THE TANDON YEARS
1985 Chuck went to work for his old friend Jugi (pronounced jug-e)
Tandon and started to build IBM PC clones. At one point in the
late 1980's Tandon Computers was Europe's largest manufacturer of
clones. Chuck credits Tandon's use of non-standard chassis for
some of their success. By 1991 they had 1100 employees and sales
of $400 million. However, in 1993 Tandon was bankrupt and Chuck
went on to work with the residue of that company. Today he is the
Chief Technology Officer
(which has over 5000 employees) and is still involved in patenting
important new technology concepts. He lives a global traveler life
style spending most of his time between Nevada, Sri Lanka and India.
first met Chuck during CES 2006 in Las Vegas and found him to be a
personable, friendly, 68 year old. We talked until after 3am and
he was surprisingly complimentary to his contemporaries, like Steve
Jobs, Bill Gates and Jack Tramiel. About the most mean spirited
comment I have heard him make is "There is nothing nice about Steve Jobs
and nothing evil about Bill Gates. Gates is a good man".
Make no mistake; Chuck was firm and had strong opinions about these
people, but he never once tried to take more credit than I thought he
Chuck Peddle is a legend in the industry who
some insiders credit for their success. As an example of this,
during one of Bill Gates 50th birthday speeches, he mentioned Chuck by
name. One of Bill Mensch's comments was "He understood the
market and has the vision". The combination of the 6502, the KIM1
and the Commodore PET leads many observers to credit Peddle with the
lofty title: Father of the Personal Computer.
Chuck Peddle deserves much more credit for
inventing the Personal Computer than he has received to date. He
changed all our lives. His inventions and vision drove Commodore
(and to a lesser degree Apple) to their early success while making massive
entrenched companies like IBM sit up and take note. We at
wish him all the best in his future endeavors and look forward to
benefiting from his new inventions.
Intel 8088 vs
The difference between an Intel 8088
and and the more powerful 8086 is that the 8088 only has an 8bit bus so
it needs to load two eight bit "words" before it can process its 16bit
A huge but partial list of MOS 6502 based devices can be
Original Chuck Peddle
Our original Chuck Peddle page is available
HERE if you still
want more Chuck!