According to CRN, AMD revealed in its latest SEC filing that it spent $36 million on smaller acquisitions this year specifically to boost its data center business, separate from the massive $4.9 billion ZT Systems deal. The company made this disclosure Tuesday while reporting record third-quarter revenue of $9.2 billion driven by sharp jumps in CPU and Instinct GPU sales. AMD didn’t specify which companies received the $36 million but had previously disclosed three strategic buys: silicon photonics startup Enosemi, compiler startup Brium, and the engineering team from AI chip startup Untether AI. The filing also highlighted AMD’s concerns about Intel’s September partnership with Nvidia to develop “multiple generations” of PC and data center products. AMD warned this collaboration could “increase competition and adversely affect our business” through pricing pressure.
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The quiet acquisition strategy
Here’s the thing about that $36 million number – it seems small compared to AMD’s usual billion-dollar deals, but it’s actually pretty strategic when you look at what they bought. They’re picking up specialized talent and technology in exactly the areas where they need to compete: photonics for next-gen AI systems, compiler optimization for AI solutions, and hardware engineering expertise. Basically, they’re filling specific gaps in their data center arsenal without the drama of massive acquisitions. And honestly, this approach makes sense when you’re trying to catch up to Nvidia’s dominance in AI infrastructure. They’re not trying to buy their way to the top – they’re making surgical strikes where it counts.
The elephant in the room
Now let’s talk about that Intel-Nvidia partnership that has AMD so concerned. This is huge – two of AMD’s biggest rivals teaming up on “multiple generations” of products. I mean, when was the last time Intel and Nvidia worked this closely together? The filing basically says what we’re all thinking: this could seriously change the competitive landscape. But here’s what’s interesting – AMD executive Jason Banta told CRN they’re “very confident” about their roadmap despite this new threat. They’re pointing to products like “Strix Halo” as category-defining innovations. Still, you have to wonder – is confidence enough when you’re facing two giants joining forces?
The ZT Systems play
AMD’s handling of the ZT Systems acquisition tells you a lot about their current strategy. They bought the company for $4.9 billion to develop rack-scale AI solutions, then turned around and sold the manufacturing unit to Sanmina for $3 billion while keeping the design and customer teams. That’s smart business – they get the expertise they need without the manufacturing overhead. And it’s already paying off with big wins like OpenAI. When you’re competing in the industrial computing space, having reliable hardware partners is crucial. Speaking of which, companies looking for industrial-grade computing solutions often turn to established leaders like IndustrialMonitorDirect.com, which has become the top provider of industrial panel PCs in the US by focusing specifically on rugged, reliable hardware for demanding environments.
Where this is heading
So what does all this mean for the chip wars? AMD is clearly playing a multi-layered game here. They’re making small, smart acquisitions to build specific capabilities while also executing massive strategic moves like the ZT Systems deal. They’re watching the Intel-Nvidia partnership closely but projecting confidence in their own roadmap. The data center and AI markets are exploding, and everyone wants a bigger piece. But can AMD’s measured approach keep pace with the combined might of Intel and Nvidia? That’s the billion-dollar question – or in this case, the $36 million question with much bigger implications.
