AMD completes $334 million SeaMicro acquisition

AMD has completed its $334 million acquisition of SeaMicro, less than a month since the chip giant suddenly announced its intentions to buy.

AMD said that the £334 million acquisition of specialist server maker SeaMicro has been completed, less than a month after the chip giant paved the way to buying the company.

The acquisition will include $293 million cash.

SeaMicro specialises in low-power, energy-efficient servers. Its first web server managed to hold 256 Intel Atom processors, chips normally reserved for smartphones, into a size smaller than a shoebox.

The deal, announced February 29, will give AMD a path to follow in the low-power server space, and providing a pivotal role in its push for a cloud datacenter business. The move was a surprise, but not to Intel, which reportedly passed on making a similar deal earlier this year after it was "not impressed" by the company's offerings.

ZDNet's Larry Dignan explained that the acquisition was "all about nudging its way into a hot market at Intel's expense." Since Facebook, Google, and other web giants have long sought for slimmed down datacenters in form of smaller, energy saving systems, it nicks away at a market still in development, and could soon challenge the traditional datacenter server model.

ARM began its market challenge by developing chips for low-powered servers, offering as many as 480 cores that consume no more than 600W. The market braces itself for another competitiveness streak, as the battle between ARM-based chips and AMD low-power chips will metaphorically, though likely not literally, begin to heat up.

SeaMicro will become AMD Data Center Server Solutions now the deal has completed.