To enhance its AI infrastructure offerings, AMD has announced its acquisition of ZT Systems, a leading provider of AI infrastructure for some of the world’s largest hyperscale computing companies. The $4.9 billion deal, which includes a contingent payment of up to $400 million based on post-closing milestones, represents a significant leap forward in AMD’s mission to deliver cutting-edge AI training and inference solutions.
A Strategic Fit for AMD’s AI Vision
Lisa Su, Chair and CEO of AMD, emphasized the importance of this acquisition as part of the company’s long-term AI strategy. “Our acquisition of ZT Systems is the next major step in our journey to provide leadership in AI solutions that can be rapidly deployed at scale. By integrating ZT’s world-class systems design and rack-scale solutions expertise with our high-performance Instinct AI accelerators and EPYC CPUs, we can offer comprehensive AI infrastructure solutions that meet the evolving needs of our cloud and enterprise customers.”
ZT Systems, known for its expertise in designing and optimizing cloud computing solutions, is expected to play a crucial role in helping AMD accelerate the deployment of AI infrastructure on a global scale. The company’s integration into AMD’s Data Center Solutions Business Group will enable AMD to expand its data center AI systems and customer enablement capabilities, ultimately solidifying its position in the AI infrastructure market.
The Financials and Future Integration
Following the completion of the transaction, ZT Systems will operate under the leadership of its current CEO, Frank Zhang, and President, Doug Huang. Zhang will lead the manufacturing business, while Huang will head the design and customer enablement teams, reporting directly to AMD Executive Vice President and General Manager Forrest Norrod.
ZT Systems has long been a critical player in the cloud infrastructure market, providing innovative computing and storage solutions for leading cloud companies. The partnership with AMD enhances both company’s ability to meet the increasing demand for AI-driven data center solutions.
“We are excited to join forces with AMD and contribute to the future of AI infrastructure,” said Frank Zhang, CEO of ZT Systems. “Our shared vision for the role of technology in shaping the future of computing will drive our collaboration to new heights, enabling us to deliver the computing infrastructure powering the largest data centers in the world.”
What’s Next for AMD and ZT Systems?
The acquisition aligns with AMD’s broader investing strategy in AI hardware and software development. By combining AMD’s existing product portfolios with ZT System’s industry-leading data center solutions, AMD is positioning itself to deliver end-to-end AI infrastructure at scale, further enhancing its competitiveness in the rapidly evolving tech landscape.
With the transaction expected to be accretive on a non-GAAP basis by the end of 2025, AMD aims to significantly impact the AI infrastructure market, offering its customers comprehensive, scalable solutions that meet the demands of the modern data center.
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