A series of sputtered multilayers of Ni80Fe20-Ag was prepared to exami
ne the giant magnetoresistance effect before and after annealing. For
a wide range of NiFe and Ag thicknesses, no giant magnetoresistance wa
s observed in the unannealed films. After annealing, a large, negative
magnetoresistance was observed of order 4 to 6% in applied fields of
order 5 to 10 oersteds at room temperature. The appearance of giant ma
gnetoresistance is concurrent with the breakup of the NiFe layers, whi
ch is attributable to a magnetostatic interaction that favors local an
tiparallel alignment of the moments in adjacent layers. These structur
es may be of significant practical importance as sensors that require
large changes in resistance at low fields, such as magnetoresistive he
ads used in magnetic recording systems.