AMD acquires ZT Systems in deal to enhance data centre AI capabilities
Advanced Micro Devices Inc. (AMD) has announced a landmark agreement to acquire ZT Systems, a provider of AI and compute infrastructure for hyperscalers, in a deal valued at £4.9 billion.
The acquisition will bolster AMD’s capabilities in data centre AI systems, and position the company to more effectively compete in the expanding market for AI accelerators.
The transaction, which includes a cash and stock component along with a contingent payment of up to £320 million based on post-closing performance milestones, is expected to be accretive to AMD’s non-GAAP earnings by the end of 2025.
Dr. Lisa Su, AMD’s chair and CEO, commented on the acquisition: “The purchase of ZT Systems represents a pivotal step in our long-term strategy to provide leading-edge AI training and inference solutions.
“ZT Systems brings exceptional design and integration capabilities, which will greatly augment our data centre AI systems and enhance our ability to deploy solutions at scale across both cloud and enterprise environments. Combining ZT’s expertise with our high-performance Instinct AI accelerators and EPYC CPUs will enable us to deliver comprehensive, end-to-end AI infrastructure in partnership with our OEM and ODM partners.”
