SPOILER: The machine dies at the end.
(Thanks, Gram)
Reader comment: Edward West says,
The Muppet character that devours the computer in this video is not Cookie Monster, but a character that predates cookie monster, that later evolved into cookie monster. The computer-eating skit was initially made for an IBM training video, and later was redone for the Ed Sullivan Show. The most accurate name for this Muppet at the time would be "Wheel-Stealer," a character created for a never-aired commercial Jim Henson made for General Foods. See wikipedia entry for Cookie Monster for more details.
