AMD buys cloud tech startup Pensando for $1.9 billion in a push to challenge Intel in the data center chip market
Semiconductor giant Advanced Micro Devices (AMD) announced on Monday that it is acquiring cloud startup Pensando Systems for $1.9 billion as part of its push to get a lion’s share of the lucrative data center chip market and to also take on Intel.
AMD said the deal, which does not include working capital and other adjustments, will enable AMD to add Pensando’s platform to its line of processors and graphics chips. The acquisition will also help bolster AMD’s data center products and capitalize on booming demand from cloud and enterprise sectors.
As part of the agreement, Pensando CEO Prem Jain and the entire team will join AMD’s Data Center Solutions Group. The deal is expected to close in the second quarter of this year.
We covered Pensando three years ago after the cloud startup raised $278 million in funding to fund new hardware and software products to help the data centers of customers like investment banks function more like those of big cloud computing providers.
Founded in 2017 by a group of four ex-Cisco Systems engineers Mario Mazzola, Prem Jain, Luca Cafiero, Soni Jiandani, and Randy Pond, Pensando Systems is pioneering distributed computing designed for the New Edge, powering software-defined cloud, compute, networking, storage and security services to transform existing architectures into the secure, ultra-fast environments demanded by next-generation applications.
The four Cisco veterans have an unmatched track record of disruptive innovation after having built 8 $Bn/Year businesses across storage, switching, routing, wireless, voice/video/data, & software-defined networking.
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 Amazon Web Services. Its customers include Goldman Sachs and Microsoft Corp’s cloud unit Azure.