AMD has signed a $250 million deal with Nutanix for the development of an AI platform.
The deal between AMD and Nutanix involves AMD purchasing $150 million in Nutanix shares and investing up to $100 million in the development of its own AI platform to develop GPUs.
Nvidia and AMD
Until now, Nutanix has only supported Nvidia GPUs. Thanks to the deal, AMD accelerators will also be used. According to CEO Rajiv Ramaswami, it is all about choice for customers: Nvidia remains the market leader, but AMD is set to become the full-fledged alternative.
Nutanix saw its quarterly revenue rise by 10 percent to $723 million, reports The Register. Annual recurring revenue grew 16 percent to $2.36 billion. In the last quarter, Nutanix gained 1,000 new customers, most of whom are switching from VMware.
Impact of shortages
According to Nutanix, CPU scarcity in particular poses a greater challenge than memory prices. Shortages are leading to longer lead times for servers, which impacts the timing of software revenue. The company therefore slightly lowered its annual forecast. Despite these outlooks, Nutanix shares rose by nearly 20 percent after hours.