AMD buys data center chip maker Pensando for $1.9 billion

AMD to acquire Pensando for 1.7 billion euros. Pensando designs chips and develops software for the cloud and enterprise markets. The company was founded in 2017 and has supplied products to IBM Cloud, Microsoft Azure and Oracle Cloud.

Pensando designs according to AMD packet processors that can take over CPU tasks within a network, allowing networks to handle tasks more efficiently. The company also supplies software for such networks.

AMD CEO Lisa Su says the acquisition of Pensando will be complementary to what AMD is already doing and points out that many data centers use EPYC processors. Su believes that the knowledge and skills of the Pensando team will help AMD deliver more and better services and products for cloud, enterprise and edge customers.

The two companies expect the acquisition to close in the current quarter, pending regulatory approval. The acquisition of Pensando is not AMD’s largest acquisition ever. In February, the company completed its acquisition of Xilinx for $35 billion.