AMD announced a major strategic move in the artificial intelligence space, acquiring ZT Systems for $4.9 billion. This acquisition represents a critical step for AMD in its competition with NVIDIA in the AI space. The addition of ZT Systems, a provider of AI infrastructure to leading global cloud computing companies, will enable AMD to further expand its presence in the space.
AMD today confirmed Monday, August 19, 2024, that it has signed a definitive agreement to acquire ZT Systems, a leading provider of AI infrastructure to the world’s largest cloud computing companies. This strategic transaction marks a key milestone in AMD’s AI strategy, with the goal of delivering advanced AI training and inference solutions based on innovations in silicon, software and systems.
Headquartered in Secaucus, New Jersey, ZT Systems has more than 15 years of experience designing and optimizing cloud computing solutions, expertise that will be critical to accelerating the widespread adoption of AMD-powered AI infrastructure. The acquisition, which will be effected in a cash and stock transaction valued at $4.9 billion, includes a contingent payment of $400 million tied to specific post-closing milestones.
Lisa SuChairman and CEO of AMD, commented, “The acquisition of ZT Systems represents the next major step in our long-term AI strategy. ZT adds world-class system design capabilities and rack-scale solutions that will significantly strengthen our capabilities in AI systems for the data center. This acquisition builds on our investments to accelerate our AI hardware and software roadmaps, enabling us to offer complete AI infrastructure for the data center in collaboration with our OEM and ODM partners.”
ZT Systems CEO Frank Zhang expressed excitement about the acquisition, saying, “We are thrilled to join AMD and further contribute to designing the AI infrastructure that is defining the future of computing. For nearly 30 years, we have evolved our business to become a leading provider of critical compute and storage infrastructure for the world’s largest cloud companies. AMD shares our vision of the importance of our technology and people in building the computing infrastructure that powers the world’s largest data centers.” Following the closing of the transaction, which is expected to be in first half of 2025ZT Systems will join AMD’s data center solutions group. Frank Zhang will continue to lead ZT’s manufacturing business, while Doug Huang, President of ZT, will lead the engineering and customer support teams, both reporting to Forrest Norrod, Executive Vice President and General Manager of AMD.
This acquisition builds on a series of investments AMD has made over the past 12 months, with more than $1 billion spent to expand the company’s AI ecosystem and strengthen its AI software capabilities.
What do you think about this acquisition? Do you think AMD will be able to close the gap with NVIDIA? Let us know in the comments below.
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