Microsoft has announced its acquisition of Fungible, a company that produces data processing units (DPUs) used in data centers.

Microsoft Azure is the second-largest cloud computing platform behind AWS. Microsoft clearly wants to improve its data center offerings, and sees Fungible as a way to achieve that.

“Fungible’s technologies help enable high-performance, scalable, disaggregated, scaled-out datacenter infrastructure with reliability and security,” writes Girish Bablani, Corporate Vice President, Azure Core.

“The Fungible team will join Microsoft’s datacenter infrastructure engineering teams and will focus on delivering multiple DPU solutions, network innovation and hardware systems advancements.”

Microsoft sees Fungible as a long-term investment that will help it differentiate its offerings.

“Today’s announcement further signals Microsoft’s commitment to long-term differentiated investments in our datacenter infrastructure, which enhances our broad range of technologies and offerings including offloading, improving latency, increasing datacenter server density, optimizing energy efficiency and reducing costs,” Bablani adds.

No financial terms of the acquisition were revealed.