AMD to Acquire ZT Systems for $4.9B to Boost AI

On August 19, AMD officially announced a $4.9 billion agreement to acquire server manufacturer ZT Systems, marking a significant milestone in its AI strategy. The acquisition will be executed through a cash-and-stock deal, with 75% paid in cash and the remaining 25% in AMD stock.

ZT Systems, a leader in AI infrastructure solutions for some of the world's largest hyperscale computing companies, brings over 15 years of expertise in designing and deploying AI computing and storage infrastructure. The company, headquartered in Secaucus, New Jersey, is well-positioned to complement AMD's existing chip and software capabilities.

AMD's acquisition of ZT Systems represents a crucial step in enhancing its AI offerings, aiming to provide industry-leading training and inference solutions that span chips, software, and systems. The transaction has been unanimously approved by AMD's board of directors and is expected to close in the first half of 2025, pending regulatory approvals and other customary conditions. As part of the deal, AMD plans to explore strategic partnerships to divest ZT Systems'U.S. data center infrastructure manufacturing business.

Following the completion of the acquisition, ZT Systems will integrate into AMD's Data Center Solutions division. ZT Systems'CEO, Frank Zhang, will oversee the manufacturing operations, while President Doug Huang will lead the design and customer support teams. Both will report directly to Forrest Norrod, AMD’s Executive Vice President and General Manager.

This move aligns with AMD's broader investment strategy in the AI sector, which includes the recent acquisition of Silo AI. In July, AMD completed the purchase of Silo AI, Europe's largest private AI lab, for $665 million. Silo AI specializes in comprehensive AI-driven solutions, further solidifying AMD's position in the global AI market.