AMD buys datacenter startup Pensando for $1.9 billion

AMD buys datacenter startup Pensando for $1.9 billion

Business news |
By Peter Clarke

Advanced Micro Devices Inc. has signed an agreement to buy Pensando Systems Inc. (Milpitas, Calif.) for approximately $1.9 billion.

Pensando provides a distributed services platform that includes a packet processor and software to accelerate networking, security, storage and other services for cloud, enterprise and edge applications.

“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,” said AMD CEO Lisa Su, in a statement.

Pensando’s products are deployed with customers including Goldman Sachs, IBM Cloud, Microsoft Azure and Oracle Cloud. AMD claims that in real-world cloud deployments, Pensando’s solution demonstrates between 8x and 13x greater performance compared to other approaches.

Data Center Solutions

CEO Prem Jain and the Pensando team will join AMD as part of the Data Center Solutions Group, led by AMD senior vice president and general manager Forrest Norrod. Pensando will remain focused on executing their product and technology roadmaps, now with additional scale to accelerate their business and address growing market opportunities across a broader number of customers.

Pensando was founded in 2017 by former Cisco Systems executives, and has engineered a data center chip specifically optimized to handle computing tasks related to network management, security and data storage. The company had raised more than $200 million in equity finance. The acquisition is expected to close in 2Q22.

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