AMD is acquiring server maker ZT Systems in a cash-and-stock transaction valued at $4.9 billion to augment its artificial intelligence capacity. This acquisition is part of AMD’s strategy to better compete with Nvidia in the AI sector. The deal, which includes a contingent payment of up to $400 million based on post-closing milestones, is expected to close in the first half of next year following board approval. Based in Secaucus, New Jersey, ZT Systems specializes in designing and deploying data center and storage infrastructure systems for cloud companies. Following the closure of the acquisition, ZT Systems will join AMD’s Data Center Solutions Business Group, with AMD planning to divest ZT’s U.S.-based data center infrastructure manufacturing business. This acquisition aligns with AMD’s broader efforts to invest over $1 billion in AI ecosystem and software enhancements over the past year.
Semiconductors, Cloud Computing, Artificial Intelligence,United States
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