AMD to acquire ZT Systems for nearly $5B to boost AI capabilities

U.S. semiconductor giant AMD has acquired New Jersey-based ZT System for $4.9 billion in a move aimed at enhancing its artificial Intelligence (AI).

The acquisition, which will be a combination of cash and stock, is part of AMD’s long-term strategy to advance its AI infrastructure offerings.

Strategic move in AI development

In a statement released by AMD, the company highlighted the significance of ZT Systems‘ extensive experience in designing and optimizing cloud computing solutions.

AMD CEO Lisa Su commented on the acquisition, describing it as a critical step in the company’s AI strategy.

“This acquisition represents the next big milestone in our long-term AI strategy and is a direct result of the investments we have made to accelerate our AI hardware and software roadmaps” Su stated.

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. 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.

AMD CEO Lisa Su

Details of acquisition

The acquisition will involve a mix of cash and stock valued at $4.9 billion. AMD aims to integrate ZT Systems’ capabilities to bolster its AI offerings, particularly in the rapidly growing hyperscale computing sector.

ZT Systems specializes in providing AI infrastructure to hyperscale computing companies, and AMD plans to leverage this expertise to further its ambitions in the AI space.