Signs of AMD are seen at the China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai, China July 30, 2021. Picture taken July 30, 2021. REUTERS/Aly Song
Chip designer Advanced Micro Devices (AMD.O) said on Monday it would acquire cloud startup Pensando for $1.9 billion to bolster its data center products and capitalize on booming demand from cloud and enterprise sectors.
AMD said the deal value does not include working capital and other adjustments.
Pensando, which was founded in 2017 by a group of four ex-Cisco Systems Inc (CSCO.O) engineers, counts Goldman Sachs (GS.N) and Microsoft Corp’s (MSFT.O) cloud unit Azure as its customers.
The startup makes a fully programmable processor and a software platform, which helps enterprise clients and data center customers to function more like cloud computing data centers like Amazon’s (AMZN.O) Amazon Web Services.
In cloud computing, customers can order as much computing power as needed in different parts of the world with a few mouse clicks. The software takes care of the mechanics of shuffling the data to the right physical machines.
The lucrative data center chip business is rife with competition, with AMD rivals Intel Corp (INTC.O) and Nvidia Corp
Only last month, Nvidia had released a new chip to speed up artificial intelligence functions in data centers. read more
The deal, which would enable AMD to add Pensando’s platform to its line of processors and graphics chips, is expected to close in the second quarter of this year.
Pensando’s Chief Executive Officer Prem Jain and the entire team will join AMD’s Data Center Solutions Group.
Reporting by Chavi Mehta in Bengaluru and Jane Lanhee Lee; Editing by Amy Caren Daniel
This article was originally published by Reuters.
Market registers 36,658 residential tenancy contracts worth AED3.16 billion as rents show YoY increases Dubai,…
fäm Properties analysis shows city’s 4-year pipeline 71.45% committed, as absorption rate leaves major global…
FIA President H.E. Mohammed Ben Sulayem highlights key challenges and opportunities shaping motorsport and mobility…
Basra officials say output can rebound within days as Hormuz disruption continues to weigh on…
New regime offers up to 50% tax relief, setting the stage for research-led growth and…
Tourism slowdown, real estate stress, and financial volatility drive calls for policy intervention Nearly a…