AMD Acquires Server Firm SeaMicro For $334 Million

Advanced Micro Devices Inc. closed a deal to acquire SeaMicro Inc. which will help prepare the manufacturer for entry into the server business marketplace. Sunnyvale-based AMD is ready to invest $334 million to buy this Silicon Valley start-up.

SeaMicro Inc. is popular for its micro servers products which brings together a number of chips to assist with energy-saving and storage. These products are commonly used by companies renowned for purchasing servers in bulk mass in order to maintain the operations of various popular consumer websites.

On Wednesday, AMD executives in a briefing stated that the main reason for acquiring this set-up is to provide communications technology as well as various other components developed to permit different server makers to manufacture similar products. The executives also specifically clarified that they will definitely not sell the SeaMicro servers.

Senior vice president and general manager for global business units at AMD, Lisa Su, explained: "We are not intending to compete with our customers," reported Wall Street Journal.

Su also reaffirmed that AMD will continue to support the existing clientbase of SeaMicro through the sale of servers "for the foreseeable future."