AMD has announced that it is rejoining the data center chip business to help build data centers of the future with the announcement of a 'definitive agreement' to acquire Pensando, a company specializing in data centers on the chip, software, and platform level, for $1.9b.
While not as massive as the near $50 billion purchase of semiconductor producer Xilinx, this deal makes AMD more competitive in the data center market. Pensando makes chips and software designed to make data centers more efficient at cloud computing, which AMD can adopt for their product to compete with Nvidia's Grace superchip.
“To build a leading-edge data center with the best performance, security, flexibility, and lowest total cost of ownership requires a wide range of compute engines,” said Dr. Lisa Su, AMD CEO. AMD is looking to increase its less than 1% market share of data center chips and close the gap with Intel and Nvidia.
"Today, with our acquisition of Pensando, we add a leading distributed services platform to our high-performance CPU, GPU, FPGA, and adaptive SoC portfolio. The Pensando team brings world-class expertise and a proven track record of innovation at the chip, software, and platform level, which expands our ability to offer leadership solutions for our cloud, enterprise, and edge customers.”
AMD expects to close the deal by the end of the summer.