Here is why AMD is spending $1.9 Billion on this acquisition

Advanced Micro Devices (NASDAQ: AMD) had entered a definitive agreement for the acquisition of Pensando for around $1.9 billion, subject to working capital plus other adjustments.

Pensando distributed services platform contains a reprogrammable processor

The distributed services system of Pensando contains highly efficient, reprogrammable packet processors and a powerful software framework for cloud, business, and edge services that speed up security, networking, storage, and other enterprise and edge computing services.

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A vast spectrum of computing processors is required to develop a cutting-edge computing infrastructure with the finest efficiency, security, scalability, and lowest cost of ownership. AMD CEO and Chair Lisa Su stated:

All major cloud and OEM customers have adopted EPYC processors to power their data center offerings. 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 which expands our ability to offer leadership solutions for our cloud, enterprise and edge customers.

Goldman Sachs, Microsoft Azure, Oracle Cloud, and IBM Cloud are already using Pensando’s technologies at scale, among other cloud and enterprise clients. The Pensando high-performance, highly flexible distributed solutions platform encompasses a configurable packet processor that can be spread across a network to effectively speed up multiple infrastructure solutions simultaneously, transferring workloads from the central processing unit and improving system performance.

Pensando software framework outperforms rivals by b8x to 13x

When combined with Pensando’s platform software framework, the platform provides unrivaled performance, scalability, adaptability, and security. In real-world cloud deployments, Pensando’s solution outperforms competitor alternatives by 8x to 13x. Pensando CEO Prem Jain stated:

We are excited to join the AMD family. Our shared cultures of innovation, excellence and relentless focus on partners and customers make this an ideal combination. Together, we have the talent and tools to deliver on our customers’ vision for the future of computing.

Jain added that combining with AMD will accelerate the growth of the company’s main business and allow it to pursue an expansive customer baser. Jain is expected to join AMD to be part of the Data Center Solutions Group headed by SVP and GM Forrest Norrod.