AMD To Acquire ZT Systems In $4.9B Bid To Chip Away At NVIDIA's AI Dominance
In case you haven't been paying attention, artificial intelligence (AI) is a red hot field, which extends into the lucrative data center. Up to this point, NVIDIA has dominated the category with strategic investments in GPU architectures and infrastructure. It's not alone, however, and AMD is making a bold bid to beef up its AI ecosystems by acquiring ZT Systems, a hyperscale solutions provider, in a stock and cash transaction valued at $4.9 billion.
In a statement, AMD CEO Dr. Lisa Su described the acquisition as "the next major step in our long-term AI strategy" that involves delivering best-in-class training and inferencing solutions, and rapidly deploying those solutions to customers at scale.
"ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps," Dr. Su added.
AMD already has a strong foothold in the data center where AI solutions can generate big money. That includes the company's Instinct MI300 accelerator, expansive EPYC processor models, and networking product portfolios. AMD says that adding ZT Systems to the mix will enable it to deliver end-to-end data center AI infrastructure at scale with its OEM and ODM partners.
"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. AMD shares our vision for the important role our technology and our people play designing and building the computing infrastructure powering the largest data centers in the world."
As Dr. Su noted on X/Twitter, this is about combining AMD's silicon and software solutions with ZT's expertise and infrastructure design business. Once the deal closes, ZT Systems will become part of AMD's Data Center Solutions Business Group. AMD also said it plans to sell off ZT's US-based manufacturing business.
When the dust settles, ZT President Doug Huang will lead the design and customer enablement teams, both of which will report to AMD Executive Vice President and General Manager Forrest Norrod.
AMD acquiring ZT Systems for $4.9 billion has been unanimously approved by AMD's Board of Directors.
