AMD continues its shopping spree by acquiring Thinking for $1.9 billion

AMD has announced that it is returning to the data center chip business to help build the data centers of the future with the announcement of a ‘definitive deal’ to acquire Thinkinga company specializing in chip, software, and platform-level data centers for $1.9 billion.

Although not as massive as the next one $50 billion purchase from semiconductor producer Xilinx, this agreement makes AMD more competitive in the data center market. Pensa manufactures chips and software designed to make data centers more efficient in cloud computing, which AMD can adopt to make its product compete with Nvidia’s Grace Superchip.

“Building a cutting-edge data center with the best performance, security, flexibility and lowest total cost of ownership requires a wide variety of computing engines,” said Dr. Lisa Su, CEO of AMD. AMD is looking to increase its less than 1% market share of data center chips and closing the gap with Intel and Nvidia.

“Today, with the acquisition of Pensa, we add a leading distributed services platform to our high-performance adaptive CPU, GPU, FPGA and SoC portfolio. The Pensa team brings world-class experience and a proven track record of chip innovation, software and platform level, which expands our ability to deliver leading solutions for our cloud, enterprise and edge customers.”

AMD expects to close the deal by the end of the summer.

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