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SAN JOSE, Calif. — In an endorsement of Advanced Micro Devices Inc.’s next-generation processor, Microsoft Corp. has agreed to work on adding support for the chip to its Windows operating system. 

AMD also announced Wednesday that it has selected “Opteron” as the name of the new processors designed for servers and workstations. It will keep the Athlon brand name for desktop and laptop models. 

Support from Microsoft was critical for AMD, analysts say. 

With Opteron, AMD hopes to capture business from Intel’s Itanium chip. With the new Athlon, the company is counting on performance boosts that will outpace the Intel’s Pentium 4 processors in desktop computers. 

Microsoft has previously made available a special edition of Windows for Itanium customers. 

“It’s an important first step,”!saie!Nathan Brookwood, an analyst at the research firm Insight 64. “Without Microsoft support, AMD would have really struggled at getting this product established in the marketplace.” 

Like Intel’s Itanium, AMD’s new chips will process information in chunks of 64 bits instead of 32 bits. 

But unlike Intel, which created a new instruction set for Itanium, AMD decided to extend the existing x86 architecture that has been used in computers for decades. 

AMD says all existing software will run on its new chips with no performance degradation, making the transition from 32-bit to 64-bit computing seamless for customers. 

The next-generation Athlon chips are expected to be available at the end of the year. Opteron chips are scheduled to be ship in the first half of 2003. 

Last week, AMD chief executive W.J. “Jerry” Sanders III testified on behalf of Microsoft in the latest phase of its latest antitrust battles. He denied it was in exchange for Microsoft’s endorsement. 

On Wednesday, AMD declined to discuss what Windows products would support the new processors or when they might be released.