Cray will replace IBM (NYSE) as the provider of a supercomputer project in Illinois, according to The Wall Street Journal and The Associated Press.

The University of Illinois awarded Cray a contract worth $188 million to replace IBM, which withdrew from the project three months ago. At that value, the deal is worth about half Cray’s revenue for its most recent fiscal year, according to The Associated Press.

Called “Blue Waters,” the program is valued at some $300 million and has the support of the National Science Foundation. Lead on the project is the National Center for Supercomputer Applications, which is based at the Illinois campus.

IBM had cited increasing costs and technical concerns as reasons for its withdrawal from the project. (Read details here.)Blue Waters is intended to be one of the world’s fastest supercomputers.

Last week, IBM won a federal contract for a supercomputer to support climate research. Read details here.

The Cray machine is expected to be online next year.

“This is a transformational contract for the company,” Cray Chief Executive Officer Peter Ungara said. “It’s a very big deal for us. It’s a huge contract based on the size of the company and we couldn’t be more excited about it.”

Read The Wall Street Journal story here.

For The AP report, read here.

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