$4.9 Billion: AMD Completes Acquisition of ZT Systems

According to reports, AMD has officially announced the completion of its acquisition of ZT Systems, a leading global provider of hyperscale computing and AI infrastructure. The transaction, valued at approximately $4.9 billion in cash and stock, was executed based on an acquisition agreement signed in August of last year. It also includes contingent payments of up to $400 million, contingent on achieving specific post-closing milestones.

According to AMD, the successful acquisition of ZT Systems will enable the development of innovative end-to-end AI solutions powered by AMD's comprehensive portfolio of CPUs, GPUs, networking chips, open-source AMD ROCm™ software, and rack-level systems. This acquisition aims to accelerate the large-scale design and deployment of AI infrastructure optimized for cloud environments.

ZT Systems, known for shipping over 100,000 servers annually, has previously utilized server chips from Intel and NVIDIA. However, with AMD's acquisition of ZT Systems, it is expected that ZT Systems will gradually shift its focus toward AMD's server chips, potentially reducing its reliance on Intel and NVIDIA products.

AMD projects that the acquisition will contribute to value creation on a non-GAAP basis by the end of 2025. ZT Systems' world-class design team will join AMD's Data Center Solutions Group, led by Executive Vice President Forrest Norrod. AMD is also actively engaging with several potential strategic partners to enhance ZT Systems' industry-leading data center infrastructure manufacturing capabilities in the United States by 2025.

ZT Systems' former founder and CEO, Frank Zhang, will join AMD as Senior Vice President of ZT Manufacturing, reporting to Forrest Norrod. Zhang will play a key role in overseeing the manufacturing business. Additionally, Doug Huang, former President of ZT Systems, will take on the role of Senior Vice President of Data Center Platform Engineering at AMD, reporting to Norrod. Huang will lead design and customer support teams, working closely with AMD's Data Center Solutions Group and AI Division to accelerate AI solution deployment.

Forrest Norrod, AMD's Executive Vice President and General Manager of the Data Center Solutions Group, commented:“With the rapid evolution of AI technologies, reducing end-to-end design and deployment time for cluster-level data center AI systems is a critical competitive advantage for our clients. The acquisition of ZT Systems is a significant milestone in our AI strategy, aimed at delivering advanced training and inference solutions optimized for customers' unique environments. Our open-ecosystem approach combines open-source software, industry-standard networking technologies, and ZT Systems' expertise in system design and customer support. We are excited to welcome Frank Zhang, Doug Huang, and the talented ZT Systems team to AMD, as we work together to provide customers with unparalleled choice and speed to market, empowering them to excel in their chosen AI domains.”