In February, Advanced Micro Devices Inc. move to acquire microserver startup SeaMicro Inc. in a deal worth $334 million. SeaMicro, founded in 2007, started out building servers using only Intel's Atom processors, then branched out to Xeon processors.
By acquiring a server company AMD (Sunnyvale, Calif.) put itself in position to gain design wins for its own x86 processors and to deliver server technology to customers (see AMD to buy microserver startup SeaMicro).
By December, AMD was announcing plans to cut 15 percent of its staff along with a re-organization intended to achieve a breakeven point of $1.3 billion in quarterly revenue. However, some observers said AMD's losses and rate of cash burn raise doubts as to whether the company could last beyong 2013.
SeaMicro server with AMD inside.