Source: Tech Crunch
On Monday, April 4, Chip designer AMD or, Advanced Micro Devices gave an important statement. It said that it is planning to take over cloud startup Pensando for $1.9 billion. The acquisition is essentially to reinforce its products of data centres, along with capitalising on booming demand from the enterprise and cloud sectors. Advanced Micro Devices stated that the value of the deal does not include other aspects like working capital and additional adjustments.
Cloud startup Pensando was founded in the year 2017 by a team of four former engineers of Cisco Systems Inc. The startup holds Microsoft Corp’s cloud unit Azure, along with Goldman Sachs as its well known customers. The startup is committed to making such a processor that is entirely programmable. Along with it, a software platform that essentially aids enterprise clients and data centre customers. It helps them to mostly work more like cloud computing data centres, such as that of Amazon.com Inc.’s Amazon Web Services.
There has been a host of advancements in the field of cloud computing. Customers can order as much as computing power as required, that too in various parts of the world. This is currently possible through almost all devices, with a just a number of clicks on the mouse. The software, then on, takes charge of the mechanics of compiling and shuffling the data to the correct physical machines.
AMD and its competitors in the market:
It is clear that the evidently profitable sector of the data centre chip business extensive with strong competition. Currently, AMD rivals businesses such as Intel Corp and Nvidia Corp in the competition. However, these business seemed to take similar steps when it came to punishing Russia after its invasion of Ukraine. AMD and Intel, along with TSMC halted shipments to Russia in the wake of the war. On the other hand, Nvidia Corp introduced a new chip last month. This chip is targeted to steep up artificial intelligence functions in data centres.
Crucially, the deal between AMD and Pensando is set to close in the second quarter of this year itself. This deal would allow AMD to incorporate Pensando’s platforms to its noteworthy processors and graphics chips. Moreover, the Chief Executive Officer of Pensando, Prem Jain, along with its whole teams is set to join AMD’s Data Centre Solutions Group.
<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>We’re excited to be joining the <a href=”https://twitter.com/AMD?ref_src=twsrc%5Etfw”>@AMD</a> family as they double down on data center <a href=”https://twitter.com/hashtag/innovation?src=hash&ref_src=twsrc%5Etfw”>#innovation</a> and customer success. <a href=”https://t.co/HfNn8RUfOM”>https://t.co/HfNn8RUfOM</a> <a href=”https://t.co/jJFPHoc3jB”>pic.twitter.com/jJFPHoc3jB</a></p>— Pensando Systems Inc (@pensandoio) <a href=”https://twitter.com/pensandoio/status/1511121099748253696?ref_src=twsrc%5Etfw”>April 4, 2022</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>
