AMD Strikes Deal With Chinese Tech Giant Alibaba

By | Oct 18, 2016 03:30 PM EDT

AMD's deal with Alibaba could give the company a backdoor into the Chinese market.(Photo : YouTube)

Prominent semiconductor manufacturer AMD has scored a major deal with Chinese tech giant Alibaba. The deal is the third partnership agreement that AMD has managed to close with Chinese firms as part of the company effort to expand its products and services.

Many market analysts agree that the latest deal between AMD and Alibaba is by far the biggest for the former. By tapping into Alibaba, AMD has a huge potential business in China, a market that is known for its strict policies toward international firms.

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With this latest deal, some analysts agree that AMD is still in the process of expanding its business in China by closing similar deals within the next 12 months. Furthermore, the growing interest of Chinese tech firms toward the computing capacity of AMD's Zen MPUs is also an interesting focal point for future deals to come.

Under the terms of the new deal, AMD will provide graphics processing units to Alibaba, which the latter will then use for its Cloud Computing Platform. The exact monetary details of the deal were not disclosed.

However, analysts have said that this is a beneficial deal for the two parties involved. AMD will be able to expand its graphics card business outside of the gaming market, while Alibaba will be able to supply its cloud computing business with powerful graphics cards from AMD.

Many analysts agree that the deal has a potential to grow into a long-term agreement between AMD and Alibaba. 

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