PSGroove has announced that they finished development on the open source Playstation 3 jailbreak software, which was created by a well known programmer named Mathieulh. It is now publicly available, and can be downloaded. Once downloaded it has to be transferred to a USB dev key. The development of this software is the second jailbreak for the Playstation 3 after the announcement of the PSJailbreak USB device a few weeks back.

The software was not created to allow piracy, and instead was developed so that gamers can play unsigned third party applications as well as games. The software will work with models:
AT90USB162
AT90USB646
AT90USB647
AT90USB1286
AT90USB1287
ATMEGA32U4

Because the PSGroove software is open source, Sony is sure to get hold of it and figure out how to plug any holes in their system. This will likely result in a cat and mouse game between Sony and PsGroove.