Commodore and Amiga Amid rumors that Tramiel was negotiating to buy Atari, Amiga Corp. entered discussions with Commodore. This led to Commodore wanting to purchase Amiga Corporation outright, which Commodore believed would cancel any outstanding contracts, including Atari's. Instead of Amiga Corp. delivering Lorraine to Atari, Commodore delivered a check of $500,000 to Atari on Amiga's behalf, in effect returning the funds Atari invested in Amiga for the chipset. Tramiel countered by suing Amiga Corp. on August 13, 1984, seeking damages and an injunction to bar Amiga (and effectively Commodore) from producing anything with its technology. At Commodore, the lawsuit left the Amiga team in limbo during mid-1984. Nothing of the status of the chipset, the Lorraine computer, or the team's fate was known. In late 1984, Commodore informed the team of reactivating the Lorraine project, and the chipset was to be improved, the operating system (OS) developed, and the hardware design completed. Commodore announced the Amiga 1000 with the Lorraine chipset in July 1985, and the delay gave Atari, with its many former Commodore engineers, time to deliver the first Atari ST units in June 1985. In March 1987, the two companies settled the dispute out of court in a closed decision. Operating system With its hardware design nearing completion, the Atari team started looking at the operating system. Soon after the Atari buyout, Microsoft suggested to Tramiel that it could port Windows to the platform, but the delivery date was out by two years, far too long for their needs. Another possibility was Digital Research, which was working on a new GUI-based system then known as Crystal, soon to become GEM. Another option was to write a new operating system, but this was rejected as Atari management was unsure whether the company had the required expertise. Digital Research was fully committed to the Intel platform, so a team from Atari was sent to the Digital Research headquarters to work with the "Monterey Team", which comprised a mixture of Atari and Digital Research engineers. Atari's Leonard Tramiel was the Atari person overseeing "Project Jason" (also known as The Operating System) for the Atari ST series, named for designer and developer Jason Loveman. GEM is based on CP/M-68K, essentially a direct port of CP/M to the 68000. By 1985, CP/M was becoming increasingly outdated; it did not support subdirectories, for example. Digital Research was also in the process of building