AMD Acquires Server Startup SeaMicro for $334 Million

Paul Lilly

Advanced Micro Devices isn't afraid to spend big bucks acquiring companies seemingly out of the blue, such as it did when it acquired ATI for $5.4 billion in 2006. Fast forward to today and AMD is getting ready to spend over a quarter of a billion dollars scooping up SeaMicro, a startup that's been intensely focused on low-power, high-bandwidth microserver solutions.

AMD will fork over $334 million for SeaMicro, with $281 million of that sum to be paid in cash. The Sunnyvale chip maker sees the acquisition as an opportunity to accelerate its strategy to "deliver disruptive server technology" to OEM customers with cloud-centric data centers.

"By acquiring SeaMicro, we are accelerating AMD’s transformation into an agile, disruptive innovator capable of staking a data center leadership position," said Rory Read , president and CEO, AMD. "SeaMicro is a pioneer in low-power server technology. The unmatched combination of AMD’s processing capabilities, SeaMicro’s system and fabric technology, and our ambidextrous technology approach uniquely positions AMD with a compelling, differentiated position to attack the fastest growing segment of the server market."

SeaMicro's golden egg is its "supercompute fabric" that connects thousands of processor cores, memory, storage, and input/output traffic. It supports multiple processor instruction sets and is currently deployed in multiple sites around the globe, AMD says.

Image Credit: SeaMicro

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