Very good news for Advanced Micro Devices (AMD), because now AMD is going to provide server chips to e-commerce giant Alibaba in order to fulfill the company’s cloud vision. Alibaba boasts world’s largest online market, it owns Aliexpress, Taobao, and even being in the smartphone market by investing $ 590 million in Meizu. AMD will be the cornerstone of a new project where the company expects to help with cloud services looking to compete with services like Microsoft Azure or Amazon Web Services.

AMD To Supply Cloud Servers Chips To Alibaba


The deal was announced in the Conference on Informatics Alibaba by Lisa Su (CEO of AMD) and Simon Hu (President of Alibaba Cloud). Through it, AMD will use its new graphics products Radeon Pro to support and extend the capabilities of cloud computing.

The chip maker based in Sunnyvale has become an increasingly important in semi-custom business with its CPUs and GPUs that give life to current and future consoles of Microsoft and Sony; the supply of semi-custom CPUs for the Chinese government; and recently entered the aerospace industry through its collaboration with CoreAVI. After the announcement, AMD managed to climb 4 percent ($6.80) in the stock market.