AMD ahead of Pensado acquisition
San Francisco, Apr. 7, 2022
Chipmaker AMD plans to acquire Pensando, a data center optimization startup, for $1.9 billion in cash.
Pensado’s platform uses processor optimization to improve data center performance. The acquisition is expected to improve AMD’s competitiveness in the fast-growing data center industry.
Pensando offers a programmable packet processor optimized for edge computing and a distributed services platform. Its customers include Goldman Sachs, Microsoft Azure, Oracle Cloud and IBM Cloud.
The company’s acquisition will allow AMD to expand its data center offerings and compete with Nvidia and Intel’s data center chip packages, according to reports.
The $1.9 billion acquisition, which comes before working capital and other adjustments, is expected to close in the second quarter of 2022.
AMD completed its largest acquisition to date – buying semiconductor company Xilinx for $50 billion – in February. Xilinx makes computer chips known as FPGAs, which are flexible for use in data centers and other industries.