> Hard to believe they have the resources to create this.

They even talk about future chips incorporating both X-Gene and PowerPC core(s):

"[...] we were one of the first companies to release a Power PC and ARM on the same die about three years ago, and that's doing really well today, so you'll start to see a very interesting mix of products as we go forward. Where you'll start to see all of our best-at-breed Power PC technology start to blend with versions of pieces of X-Gene for various applications. That will be a very, very, very important intersection point, because [...] we want to maximize the investments that we are making in all of these areas, right, so if we are going to build the world's first world class server class 64-bit core, we want to make sure that we can use that core in some form or fashion going forward along with a Power PC per our customers' request so that they can have the ability to run all their legacy code and run their new code on the ARM."
http://www.sec.gov/Archives/edgar/data/711065/000119312511300076/d253150dex992.htm

Btw, does anybody know which Applied Micro chip had "a Power PC and ARM on the same die about three years ago"? I'm well aware of the fact that at the heart of PacketPro's SLIMpro subsystem is a 250 MHz ARM Cortex-M3 core, but the PacketPro family was only announced (not even released) in September 2010, which hardly qualifies as "three years ago".