AMD Acquires ZT Systems for $4.9 Billion to Boost AI Efforts
AMD has announced the acquisition of ZT Systems for $4.9 billion, marking its third-largest acquisition to date. Founded in 1994, ZT Systems specializes in data center infrastructure and has been a key player in providing AI computing designs for major tech companies. This move aims to enhance AMD's capabilities in the competitive AI landscape, particularly against rivals like NVIDIA.
AMD plans to retain ZT's design infrastructure business while selling off its manufacturing division. The acquisition is expected to strengthen AMD's AI offerings, integrating ZT's infrastructure with AMD's GPUs and CPUs to provide comprehensive AI solutions for clients, including major customers like AWS and Azure.
CEO Lisa Su emphasized that this acquisition is a significant step in AMD's long-term AI strategy, aiming to deliver scalable solutions for cloud and enterprise customers. The deal also includes potential performance-based incentives worth an additional $400 million.