Highlights:

  • AMD reported that it has invested over USD one billion in the past 12 months to expand its AI ecosystem and enhance its AI software capabilities.
  • The semiconductor manufacturer stated its intention to integrate the hyperscale provider’s AI and general compute infrastructure to speed up AI deployments for cloud and enterprise clients.

Recently, Advanced Micro Devices Inc. AMD announced its agreement to acquire ZT Systems, a company specializing in artificial intelligence infrastructure for hyperscale computing. This acquisition aims to enhance AMD’s solutions for scaling AI model operations.

As part of the agreement, AMD has committed to pay USD 4.9 billion for ZT Systems in a combination of stock and cash. An additional USD 400 million will be paid upon meeting specific post-closing performance milestones.

The semiconductor manufacturer announced plans to incorporate the hyperscale provider’s AI and general compute infrastructure to accelerate AI deployments for cloud and enterprise clients.

Based in Secaucus, New Jersey, ZT Systems was established in 1994 and offers advanced compute, storage, and accelerator solutions. The company collaborates with major corporations and chipmakers, including Intel Corp. and Nvidia Corp., to provide its services to cloud and enterprise clients.

“ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps,” said Dr. Lisa Su, Chair and Chief Executive of AMD.

AMD reported that it has invested over USD one billion in the past 12 months to expand its AI ecosystem and enhance its AI software capabilities. In April, the company introduced new processors for AI-enabled laptops and desktops to compete with rivals Nvidia and Intel, which already produce AI chips for PCs. Additionally, in July AMD announced its intention to acquire Silo AI Oy, a Finland-based developer of custom AI models, for approximately USD 665 million.

Su stated, “Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners.”

After the deal is finalized, ZT Systems will integrate into AMD’s Data Center Solutions Business Group. ZT CEO Frank Zhang will head the manufacturing division, while ZT President Doug Huang will oversee the customer and enablement teams. Zhang and Huang will both report directly to Forrest Norrod, AMD’s Executive Vice President and General Manager.

AMD indicated that the transaction is anticipated to be completed in the first half of 2025.