In a unanimous decision by the AMD board of directors, an agreement has been signed to acquire ZT Systems in a cash and stock transaction valued at $4.9bn.
This is inclusive of a contingent payment of up to $400m based on certain post-closing milestones.
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The acquisition will provide industry-leading systems expertise to accelerate the deployment of optimised rack-scale solutions addressing a $400bn data center AI accelerator opportunity in 2027.
AMD has over 50 years’ experience in high-performing computing, graphics and visualisation technologies which it hopes to combine with ZT Systems’ design, integration, manufacturing and deployment capabilities which have made them a leading provider of AI training and inference infrastructure.
Dr. Lisa Su, AMD Chair and CEO said: “This acquisition 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.”
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By GlobalDataZT Systems is a leading supplier of hyperscale server solutions for cloud computing and artificial intelligence with over 29 years of experience.
The acquisition is currently expected to close in the first half of 2025, subject to certain regulatory approvals and other customary closing conditions.
Following transaction close, ZT Systems will join the AMD Data Center Solutions Business Group with ZT CEO Frank Zhang leading the manufacturing business.
Frank Zhang, CEO of ZT said: “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.”
AMD will seek a strategic partner to acquire ZT Systems’ industry-leading US-based data center infrastructure manufacturing business.
In the last 12 months, in addition to increasing organic R&D activities, AMD has invested more than $1bn to expand the AMD AI ecosystem and strengthen the company’s AI software capabilities.
