AMD To Acquire ZT Systems For $4.9 Billion To Boost AI Data Center
The acquisition aligns with AMD’s broader goal of delivering advanced training and inferencing solutions that are scalable across cloud and enterprise customers.
AMD, a leading player in the semiconductor industry, has announced plans to acquire ZT Systems, a prominent provider of AI infrastructure for hyperscale computing solutions. The acquisition, valued at $4.9 billion, will enhance AMD's position in the rapidly growing AI market and is expected to be accretive on a non-GAAP basis by the end of 2025.
The deal, which includes a contingent payment of up to $400 million based on performance milestones, will see AMD integrate ZT Systems' extensive experience in designing and optimizing cloud computing solutions. This addition will support AMD's long-term AI strategy to deliver advanced training and inferencing solutions across cloud and enterprise environments.
ZT Systems, founded in 1994 and based in New Jersey, has been a significant player in the computing infrastructure market. The company, which had raised $850 million in debt in 2023, has worked closely with major chipmakers like Nvidia and Intel. Its expertise spans server solutions for storage, GPU/accelerators, high-performance computing, 5G, and edge computing.
Dr. Lisa Su, AMD Chair and CEO, stated, "ZT Systems brings world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition aligns with our investments in accelerating our AI hardware and software roadmaps, enabling us to provide end-to-end data center AI infrastructure at scale."
Following the acquisition, ZT Systems will become part of AMD’s Data Center Solutions Business Group. Frank Zhang will oversee AMD’s manufacturing business, while ZT President Doug Huang will lead design and customer enablement teams. AMD will also seek a strategic partner to acquire ZT Systems' U.S.-based data center infrastructure manufacturing business.
This acquisition is part of AMD's broader strategy to expand its AI capabilities. Over the past year, AMD has invested over $1 billion to expand its AI ecosystem and strengthen its AI software capabilities, building on its high-performance Instinct AI accelerators, EPYC CPUs, and networking product portfolios.
The deal is expected to close in the first half of 2025, further advancing AMD’s investments in AI hardware and software, as well as its overall data center infrastructure capabilities.
