AMD to Acquire ZT Systems for $4.9B to Enhance AI Ecosystem

AMD, a leading chipmaker in the AI market, has announced the acquisition of ZT Systems for $4.9 billion to strengthen its position as a key partner in the AI ecosystem. ZT Systems specializes in compute design and infrastructure for AI, cloud, and general purpose computing. The deal includes cash, stock, and a contingent payment of up to $400 million based on performance metrics.

The acquisition will allow AMD to integrate ZT Systems' computing infrastructure design business. AMD plans to sell ZT Systems' data center infrastructure manufacturing business to a strategic partner.

ZT Systems, based in New Jersey, was founded in 1994 and has worked closely with chipmakers like Nvidia and Intel in areas such as server solutions, high-performance computing, 5G, and edge computing. The acquisition will provide AMD with expertise in AI systems design that spans silicon, software, and systems, enabling the company to offer complete solutions to customers.

AMD's long-term AI strategy focuses on delivering advanced training and inferencing solutions at scale. With the acquisition of ZT Systems, AMD aims to enhance its data center AI systems and customer enablement capabilities. The deal is expected to close in the first half of 2025.