March 1, 2012 10:36 am EDT

AMD absorbs server startup SeaMicro for $330 million, says it's no impulse buy

AMD has faced some tough tactical decisions since it sold its handheld chip division to Qualcomm in 2008 and effectively stepped out of the smartphone business. Whistling that "No Regrets" tune, it has burrowed ever deeper into ever bigger devices, from laptops to desktops and massively multi-core servers and supercomputers. Today's purchase of Silicon Valley startup SeaMicro is an exponential leap in the same direction, because SeaMicro specializes in building low-power server hardware for entire datacenters. One of its key innovations is a "fabric" that hooks up thousands of processors, memory units and storage devices into a sensible whole for cloud computing. Rather than trying to compete with its own server-building customers, AMD may well offer them SeaMicro's platform on license and seek to recoup its $330 million investment that way. With ARM also stepping up its server efforts, it's a question of snoozing and losing.

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AMD absorbs server startup SeaMicro for $330 million, says it's no impulse buy originally appeared on Engadget on Thu, 01 Mar 2012 05:36:00 EDT. Please see our terms for use of feeds.

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