AMD declared the signing of a final contract to buy ZT Systems, a top supplier of AI infrastructure to the biggest hyperscale computing firms globally.
AMD’s AI strategy to provide leadership AI training and inferencing solutions based on innovation across silicon, software, and systems reaches a significant new milestone with this strategic deal.
The vast experience ZT Systems has in developing and refining cloud computing solutions will also assist cloud and business clients in greatly accelerating the large-scale implementation of AI infrastructure powered by AMD.
AMD has agreed to pay $4.9 billion in cash and stock for ZT Systems, with an additional $400 million paid subject on meeting specific post-closing goals. By the end of 2025, AMD anticipates the deal to be accretive on a non-GAAP basis.
The Strategic Move Behind This Acquisition
ZT Systems, with its headquarters in Secaucus, New Jersey, has over 15 years of experience developing and implementing large-scale data center AI compute and storage infrastructure for the biggest cloud providers worldwide.
ZT Systems is known to be one of the top suppliers of AI training and inference infrastructure thanks to their design, integration, manufacturing, and deployment skills.
“We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing,” said Frank Zhang, CEO of ZT Systems. “For almost 30 years we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies.”
What’s Next?
ZT Systems will become a member of the AMD Data Center Solutions Business Group after the transaction closes. Under AMD Executive Vice President and General Manager Forrest Norrod’s direction, ZT President Doug Huang will oversee the design and customer enablement teams, while ZT CEO Frank Zhang will oversee the production division.
In order to purchase ZT Systems’ dominant U.S. data center infrastructure manufacturing business, AMD will look for a strategic partner.
The AMD Board of Directors has unanimously authorized the acquisition. Currently, it is anticipated that the transaction will close in the first half of 2025, pending regulatory approval and other usual closing requirements.
Fostering its AI Capabilities
The latest in AMD’s string of investments aimed at bolstering the company’s artificial intelligence capabilities is the acquisition of ZT Systems. Apart from augmenting its in-house research and development endeavors, AMD has allocated over $1 billion towards broadening its AI ecosystem and fortifying its AI software proficiencies during the past year.
