AMD has entered a strategic partnership with Nutanix, investing $250 million to drive forward an AI-focused project. Under this agreement, AMD will acquire $150 million in Nutanix shares and allocate $100 million towards developing an AI infrastructure platform, facilitating integration with AMD GPUs within Nutanix’s software stack.

This collaboration marks a move by Nutanix to expand its GPU support beyond Nvidia to include AMD. Nutanix’s CEO, Rajiv Ramaswami, emphasizes the intention of offering customers diverse choices in GPU platforms.

Despite agentic AI being in its nascent stages within enterprises, Nutanix aspires to accelerate adoption by optimizing its ecosystem to accommodate AI applications across various environments — including on-premises, cloud, and edge locations.

The focus on AI coincides with Nutanix’s strong financial performance, reporting a 10% year-over-year revenue increase in Q2 to $723 million. The company’s annual recurring revenue grew by 16%, reaching $2.36 billion.

Nutanix’s customer base expanded, notably attracting users transitioning from VMware, as clients express doubts about Broadcom’s long-term reliability post-acquisition of VMware.

The ongoing supply chain challenges primarily affecting CPU availability have imposed constraints on Nutanix, impacting server lead times and pricing. This has led to adjustments in revenue forecasts, as some earnings are deferred until customer hardware is fully operational.

Nevertheless, investor confidence remains high. In response to the partnership announcement with AMD and the positive quarterly results, Nutanix’s stock surged by nearly 20% in after-hours trading.