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Google has a new project named Unladen Swallow. It's primary goal is to increase the performance of CPython by five times.

They will do these optimizations in a branch of CPython and those changes will hopefully be eventually merged into the CPython trunk.

The open source Low Level Virtual Machine (LVVM) project provides a compiler infrastructure framework that can be used to construct virtual machines and native code generators. Several front ends already exist including C and C++.

Google plans to use LVVM to build a just in time (JIT) compilation to replace Python's own virtual machine.