San Francisco
In a significant move to challenge its closest competitor, Nvidia, and expand its data center capabilities, chip giant AMD announced on Monday the acquisition of ZT Systems, a leading provider of AI infrastructure for hyperscale computing companies. The deal, valued at $4.9 billion, includes a mix of cash and stock, with a potential additional payment of up to $400 million based on specific post-closing milestones.
AMD expects this strategic acquisition to positively impact its financials on a non-GAAP basis by the end of 2025. By acquiring New Jersey-based ZT Systems, AMD aims to accelerate the deployment of its AI-powered infrastructure for cloud and enterprise customers.
“Our acquisition of ZT Systems is a crucial step in our long-term AI strategy, allowing us to offer top-tier training and inferencing solutions that can be rapidly scaled across cloud and enterprise sectors,” said Dr. Lisa Su, AMD’s Chair and CEO.
Post-acquisition, ZT Systems will become part of AMD’s Data Center Solutions Business Group. CEO Frank Zhang will continue to lead ZT’s manufacturing division, while President Doug Huang will head the design and customer enablement teams, reporting to AMD Executive Vice President Forrest Norrod.
In the past year, AMD has invested over $1 billion to expand its AI ecosystem and strengthen its AI software capabilities, supplementing its organic research and development efforts. This acquisition further solidifies AMD’s commitment to leading the AI market.
