Seagate Divests Lyve Cloud to Wasabi to Focus on Core AI Storage Solutions

Seagate Technology (STX) has announced the sale of its Lyve Cloud business unit to Wasabi Technologies as part of a strategic shift to streamline operations. Under the terms of the deal, Seagate will receive an equity stake in Wasabi, transitioning from a competitor to a shareholder, though further financial details were not disclosed. This divestiture allows Seagate to sharpen its focus on its core mass-capacity storage business, capitalizing on the surging demand driven by artificial intelligence (AI). By offloading its cloud services arm in exchange for equity, the company aims to optimize its portfolio and improve operational efficiency. Analysts view this move as a positive step toward prioritizing high-growth hardware sectors. The partnership is expected to ensure a smooth transition for existing Lyve Cloud customers while Seagate focuses on hardware innovation.