AMD is spending $1.9 billion to buy Pensando, a cloud computing company, to strengthen its data center footprint

2022-06-29 0 By

On April 6, Capital State learned that AMD(AMD.US) said it will acquire cloud computing startup Pensando for $1.9 billion to enhance its data center offerings and meet growing demand in the cloud and enterprise sectors. The acquisition is expected to close in the second quarter of 2022.Lisa Su, AMD chairman and CEO, said that to build a cutting-edge data center with the best performance, security, flexibility and lowest total cost of ownership requires a wide variety of computing engines.The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software and platform levels, which expands the company’s ability to deliver leading-edge solutions to cloud, enterprise and edge customers.This is the strategy AMD is pursuing again soon after completing its biggest deal in history.Previously, in February, AMD announced that it had completed the acquisition of Silas.The deal is a record for the chip industry, valued at about $50 billion, and will help AMD in the key data center market.AMD said: “The acquisition of Syrynx brings together a highly complementary set of products, customers and markets, as well as differentiated IP and world-class talent to build us into an industry leader in high-performance and adaptive computing.”AMD also faces tough competition from Intel and Nvidia in the lucrative data-center chip business, both of which have moved into DPU and strengthened their data center footprint prior to AMD’s acquisition.Nvidia bought Mellanox for $6.9 billion in 2020;In February 2022, Intel said it would introduce a new chip for blockchain applications, including bitcoin mining and the creation of NFT.Through this acquisition, it also symbolizes AMD’s formal entry into the FIELD of DPU. AMD has now completely covered CPU, GPU, FPGA and DPU, and the entire cloud layout is more complete.This article is from Capital State