Imagine you have a program running on your computer. Now, use your imagination to transfer that same program to (say) your WiFi card or your HDD/SSD and run it there. Because yes - those things have CPUs in them with RAM and are full computers in their own right. Some, like your HDD/SSD even have their own seperate permanent storage so that they can reload those programs when they get powered on. Other devices may have their own permanent storage or they may need to have the program re-transferred in to them the next time they get turned on. Intel's WiFi is like that, where the kernel has to re-transfer the program in to the WiFi card each time on boot.)

Anyway, because it's moved to say a WiFi card or inside your HDD/SSD now it's "firmware." The only difference is where the program runs, which is not much of a difference. It's still software and still needs to be free the same as all other programs.

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