AMD announced it will acquire ZT Systems, a leading provider of AI and general-purpose compute infrastructure for hyperscale computing companies, in a transaction valued at $4.9 billion. The acquisition is part of AMD’s strategy to enhance its AI systems capabilities, enabling the company to deliver optimized rack-scale solutions that address the growing demand for data center AI infrastructure. The transaction, expected to close in the first half of 2025, will allow AMD to combine its existing silicon and software expertise with ZT Systems’ design and deployment capabilities to accelerate AI infrastructure development for cloud and enterprise customers.
ZT Systems, headquartered in Secaucus, New Jersey, brings over 15 years of experience in designing and deploying AI and compute infrastructure at scale. Following the acquisition, ZT Systems will become part of AMD’s Data Center Solutions Business Group, with CEO Frank Zhang leading the manufacturing division and President Doug Huang overseeing design and customer enablement. AMD plans to seek a strategic partner to acquire ZT Systems’ manufacturing business while integrating the company’s expertise to strengthen its AI product offerings.
- AMD to acquire ZT Systems in a $4.9 billion cash and stock transaction.
- ZT Systems specializes in AI infrastructure for hyperscale computing companies.
- The acquisition will strengthen AMD’s data center AI capabilities and expand its market presence.
- Add ~1,000 engineers with systems and data center services expertise, resulting in ~$150M of annualized opex
- AMD aims to close the transaction in the first half of 2025, subject to regulatory approvals.
- ZT Systems will join AMD’s Data Center Solutions Business Group post-acquisition.
- AMD to seek strategic partner to acquire the manufacturing business. ZT Systems Founder & CEO, Frank Zhang will lead the manufacturing business
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” said Dr. Lisa Su, Chair and CEO of AMD.
