Avnet accuses Arm chip slinger Ampere of screwing it over on server deal
Avnet is taking legal action against Ampere Computing, alleging the firm backed out of a server purchasing deal that has left them in a financially precarious situation. The lawsuit filed in northern California outlines events dating back to early 2021, detailing how Ampere attempted to streamline its sales strategy amidst post-pandemic supply chain issues.
Key Points
- Avnet claims Ampere backed out of a contractual agreement regarding server purchases.
- The lawsuit includes accusations of breach of contract, unjust enrichment, and fraud.
- Ampere was under pressure to boost sales of its Altra processors amidst supply chain challenges.
- The failed agreement included a “backstop” where Ampere would repurchase unsold servers.
- Avnet is seeking damages of at least $3.3 million from Ampere.
Why should I read this?
This article dives into a significant legal dispute between Avnet and Ampere that could have wider implications for the server market and contractual practices. If you’re in tech or dealing with supply chains, this could be a cautionary tale worth your time. We’ve done the scouring for you, so dive into the details!
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