The chip in the picture above is a complete web-server. It is about the size of a mere match-head.
The single chip computer in the above picture runs the iPic web-server, the world's tiniest implementation of a TCP/IP stack and a HTTP web-server. The chip above is a complete micro-computer, and it includes all components of a complete computer on a single tiny micro-chip (this includes the CPU (central processing unit), memory, serial port interface circuitry, and clock oscillator).
The chip is connected directly to an Internet router, which is essentially the same as an Internet connection from an ISP. When you visit the iPic Web-server, by clicking on this demonstration link, (or this mirror), your web-browser connects to the chip shown in these photographs and the web-pages you see are sent to your web-browser directly from the tiny chip.