Acknowledging the boom in server hardware business, Advanced Micro Devices(AMD) has reportedly announced that it is going to buy low-power server vendor SeaMicro. Analysts are considering it as a surprise move that puts AMD in the systems business and disrupts Intel by acquiring one of its close partners.

For this deal, AMD is likely to pay US$334 million in cash and stock for SeaMicro, an 80-employee Silicon Valley startup that has gained attention for building highly dense and power-efficient servers for use in large-scale cloud computing environments, sources informed. 

It is reportedly said that SeaMicro’s Present CEO Andrew Feldman will become General Manager of a new division at AMD, the Data Center Server Solutions group.

A person having closed information on the matter informed our team that AMD is planning to sell SeaMicro-branded servers directly to customers. However, it bought the company significantly for its technology, which AMD seeks to license other server vendors to build their own low-power systems. 

Market watchers added, the latest move will be seen as a setback to Intel, which had formed a tight partnership with SeaMicro.it is worth noticing that most of the servers that SeaMicro currently sells are powered with low-power Intel Atom processors.