Pensando, a data centre efficiency startup, will be acquired by AMD for $2 billion.

AMD is involved in the chip business, most of which are nowadays functioning extensively in data centers. As we grow larger, efficiency becomes paramount, and the ability to maximize the efficiency of a particular workload becomes increasingly important.

AMD announced today that it plans to acquire data center optimization startup Pensando for about $ 1.9 billion. The company’s products include a programmable packet processor that manages how workloads move through the hardware infrastructure and offloads from the CPU where possible to improve performance. The company claims to perform 8 to 13 times better than competing products such as Nutanix, VMware, and Cisco. AMD Chairman and CEO Lisa Su said the acquisition is to enable data center operators to reduce operating costs by maximizing efficiency with software.

“Today, the acquisition of Pensando adds a leading distributed services platform to our portfolio of high-performance CPUs, GPUs, FPGAs, and adaptive SoCs. The Pensand team has world-class expertise at the chip, software, and platform levels. It brings a solid track record of knowledge and innovation, “she said in a statement.

Prem Jain, CEO, and co-founder of Pensando, has signed a deal to grow faster than it is within a large organization. “By working with AMD, we will be able to accelerate the growth of our core business and pursue a much larger customer base in more markets,” he said. Jain joins AMD’s data center solution group at the end of the transaction.

Patrick Moorhead, founder, and senior analyst at Moor Insight & Strategies, who closely monitors the chips industry, said AMD will now provide the primary software toolset for the data center. “NPUs (Neural Processing Units) and IPUs (Infrastructure Processing Units) perform network offloads to enable servers to provide consistent levels of performance to their applications. The solution requires chips and cards. But the framework is completely software-defined, “he explained.

Overall, Moorhead said it was a good acquisition for AMD and gave the company the skills it lacked. “This will allow AMD to enter the NPU or IPU market. It will compete with Intel, Nvidia, and Marvell. Pensando has a very wide range of enterprise and cloud customers. I like it.” ..

Founded in 2017, the company has raised more than $ 300 million from companies such as Lightspeed Ventures, Qualcomm Ventures, and Hewlett-Packard Enterprise, according to Crunchbase data. Customers include Microsoft Azure, Oracle Cloud, and Goldman Sachs.

According to AMD, the exact price of this transaction will be determined when Pensand’s working capital and other adjustments are finalized. Nevertheless, the transaction is expected to close in the second quarter, subject to a customary regulatory review.

Read More on Flaunt Weekly