Data center: AMD to buy Pensando for $1.9bn

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Data center: AMD to buy Pensando for $1.9bn
Data center: AMD to buy Pensando for $1.9bn

To help enterprise clients and data center customers to function more like cloud computing data-centers like Amazon’s Amazon Web Services, the start-up makes a fully programmable processor and a software platform

Chip designer Advanced Micro Devices (AMD), to bolster its data center products and capitalize on booming demand from cloud and enterprise sectors, will acquire the cloud start-up Pensando for $1.9 billion, AMD said on Monday.

AMD said that the working capital and other adjustments are not included in the deal value.

Pensando, which was founded in 2017 by a group of four ex-Cisco Systems Inc. engineers, counts Goldman Sachs and Microsoft Corp’s cloud unit Azure as its customers.

To help enterprise clients and data center customers to function more like cloud computing data-centers like Amazon’s Amazon Web Services, the start-up makes a fully programmable processor and a software platform.

With a few mouse clicks, customers, in cloud computing, can order as much computing power as needed in different parts of the world. The software takes care of the mechanics of shuffling the data to the right physical machines.

With AMD rivals Intel Corp and Nvidia Corp, the lucrative data center chip business is rife with competition.

Only last month, Nvidia had released a new chip to speed up artificial intelligence functions in data-centers.

Expected to close in the second quarter of this year, the deal would enable AMD to add Pensando’s platform to its line of processors and graphics chips.

Pensando’s Chief Executive Officer Prem Jain and the entire team will join AMD’s Data Center Solutions Group.

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