AMD has announced that it has signed an agreement to acquire ZT Systems, a company that provides hyperscale server solutions.
AMD says this purchase is part of its overall AI strategy, as ZT Systems’ offerings will help customers deploy AMD-powered AI infrastructure at scale. Over the last year, AMD has invested over $1 billion to strengthen its AI capabilities.
“ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities,” said AMD Chair and CEO Dr. Lisa Su. “This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps. 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.”
The acquisition is valued at $4.9 billion and AMD will pay up to $400 million “based on certain post-closing milestones.” The company expects the acquisition to close in the first half of 2025.
ZT Systems will become a part of AMD’s Data Center Solutions Business Group. ZT Systems’ CEO Frank Zhang will lead manufacturing, while president Doug Huang will lead design and customer enablement. They will both report to Forrest Norrod, executive vice president and general manager of AMD.
“For almost 30 years we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies,” said Zhang. “AMD shares our vision for the important role our technology and our people play designing and building the computing infrastructure powering the largest data centers in the world.”
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