The Commodore PET was a home

Home computer

Home computers were a class of microcomputers entering the market in 1977, and becoming increasingly common during the 1980s. They were marketed to consumers as affordable and accessible computers that, for the first time, were intended for the use of a single nontechnical user...

/personal computer

Personal computer

A personal computer is any general-purpose computer whose size, capabilities, and original sales price make it useful for individuals, and which is intended to be operated directly by an end-user with no intervening computer operator...

 produced from 1977 by Commodore International

Commodore International

Commodore is the commonly used name for Commodore Business Machines , the U.S.-based home computer manufacturer and electronics manufacturer headquartered in West Chester, Pennsylvania, which also housed Commodore's corporate parent company, Commodore International Limited...

. A top-seller in the Canadian and United States educational markets, it was Commodore's first full-featured computer, and formed the basis for their entire 8-bit

8-bit

The first widely adopted 8-bit microprocessor was the Intel 8080, being used in many hobbyist computers of the late 1970s and early 1980s, often running the CP/M operating system. The Zilog Z80 and the Motorola 6800 were also used in similar computers...

 product line.
In the 1970s Commodore was one of many electronics companies selling calculators designed around Dallas-based Texas Instruments

Texas Instruments

Texas Instruments Inc. , widely known as TI, is an American company based in Dallas, Texas, United States, which develops and commercializes semiconductor and computer technology...

 (TI) CPU

Central processing unit

The central processing unit is the portion of a computer system that carries out the instructions of a computer program, to perform the basic arithmetical, logical, and input/output operations of the system. The CPU plays a role somewhat analogous to the brain in the computer. The term has been in...

 chips. However, in 1975 TI increased the price of these components to the point where the chip set cost more than an entire TI calculator, and the industry that had built up around it was frozen out of the market.

Commodore responded to this by searching for a chip set they could purchase outright.