On Monday, AMD announced its plans to buy Pensando, a private networking processor firm, for $1.9 billion in cash. With the acquisition, AMD will be able to compete directly with Nvidia and Intel.
Pensando, founded by a group of former Cisco engineers, focuses on edge computing solutions and competes directly with Intel’s AWS Nitro and Nvidia’s Bluefield.
AMD claimed in a news statement that the company’s purchase will provide it with a networking platform that will help the company’s existing chip range move ahead.
Lisa Su, AMD’s Chair and CEO, noted that the purchase will assist data centers cut operating costs by utilizing optimized software for greater efficiency. She stated in a statement: “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.”
Pensando CEO Prem Jain will join AMD’s data center segment, which is presently led by Vice President Forrest Norrod after the purchase closes in July. Jain screamed: “Joining together with AMD will help accelerate growth in our core business and enable us to pursue a much larger customer base across more markets.”
Large cloud enterprises such as Azure, IBM, Oracle, and others will be catered to by the corporations.