AMD acquires server manufacturer ZT Systems for $4.9 billion
On August 19, AMD announced that it plans to acquire server manufacturer ZT Systems for $4.9 billion through a combination of cash and stock. 75% of the payment will be in cash and the rest will be in stock.
According to AMD's announcement, this transaction marks the next important step in AMD's artificial intelligence strategy, which is to provide leading training and reasoning solutions based on cross-chips, software and systems. The transaction has been unanimously approved by AMD's board of directors, and the acquisition is expected to be completed in the first half of 2025, subject to approval by some regulatory authorities and other closing conditions. AMD will look for strategic partners to sell ZT Systems' U.S. data center infrastructure manufacturing business.
ZT Systems is the leading AI infrastructure provider for the world's largest hyperscale computing company, with extensive AI system expertise that complements AMD's chip and software capabilities. ZT Systems is headquartered in Secaucus, New Jersey, and has more than 15 years of experience in designing and deploying data center AI computing and storage infrastructure for the world's largest cloud computing companies.
It is reported that after the transaction is completed, ZT Systems will join AMD's data center solutions business unit. ZT CEO Frank Zhang will lead the manufacturing business, and ZT President Doug Huang will lead the design and customer support teams. Both will report to AMD Executive Vice President and General Manager Forrest Norrod.
AMD emphasized that ZT Systems has extensive experience in designing and optimizing cloud computing solutions. This acquisition will also help cloud and enterprise customers significantly accelerate the large-scale deployment of AI infrastructure powered by AMD, that is, to allow AMD to provide leading AI training and reasoning solutions based on cross-chip, software and system innovations.
Media analysis said that AMD made the decision to acquire ZT in order to expand its AI chip and hardware product portfolio and compete with Nvidia, the leader in this field. Due to the needs of AI computing, technology companies need to connect thousands of chips together to form clusters in order to obtain the required data processing capabilities.
AMD's investment layout in the field of AI also includes the acquisition of Silo AI. In July this year, AMD announced that it had invested $665 million to acquire Silo AI, Europe's largest private artificial intelligence laboratory, which provides end-to-end AI-driven solutions. The acquisition was recently completed.
