Chip giant AMD is accelerating the establishment of an ecosystem front against NVIDIA through a deep integration of "equity + technology." Recently, AMD has reached a $250 million strategic partnership agreement with Nutanix, a leader in software-defined data centers.

According to the agreement, AMD will acquire $150 million worth of Nutanix stock and additionally invest $100 million for joint engineering R&D and marketing efforts between the two companies. The core goal of this collaboration is to create a new "full-stack AI infrastructure platform," aiming to allow enterprise users to run AI agents and inference applications more smoothly across on-premises, cloud, and edge environments.

AIbase learned that Nutanix's previous technology stack mainly supported NVIDIA's GPUs. Through this investment, Nutanix will fully adapt to AMD's accelerator hardware. Its CEO Rajiv Ramaswami stated in an interview: "Our goal is to give our customers choices. Although NVIDIA is the market leader, AMD is another important major platform company."

At the time of announcing the collaboration, Nutanix also released its strong second-quarter financial results. Its annual recurring revenue (ARR) increased by 16% year-over-year to $2.36 billion, and quarterly revenue reached $723 million. Notably, the company added approximately 1,000 new customers this quarter, most of whom were enterprises dissatisfied with VMware under Broadcom's management and chose to "defect." Although supply chain shortages of CPUs caused some hardware delivery delays, leading to a slight reduction in annual revenue expectations, the deep collaboration with AMD has significantly boosted investor confidence, with the company's stock surging nearly 20% after hours.

Summary:

  • 🤝 The Marriage of Chips and Software: AMD ensures that Nutanix's software stack can perfectly support its GPU hardware through a $150 million equity acquisition and $100 million R&D investment, breaking NVIDIA's monopoly.

  • 🏰 Capturing the VMware Market: Nutanix is accelerating the absorption of enterprises dissatisfied with VMware, positioning itself as a more attractive hybrid cloud alternative in the AI era.

  • ⚠️ Dealing with Supply Chain Challenges: Despite global CPU and memory supply tensions, Nutanix has demonstrated long-term growth certainty through its alliance with chip giants.