AMD to Acquire ZT Systems for $4.9 Billion to Boost AI Capabilities

AMD has announced its acquisition of AI infrastructure developer ZT Systems for $4.9 billion, according to FT.

The deal will enable the American chipmaker to accelerate the deployment of its AI data center product line and compete with Nvidia’s popular graphics processors, AMD noted.

“This will bring a thousand world-class design engineers to our team, allow for parallel development of silicon and systems, and most importantly, expedite the launch of the latest AI infrastructure in data centers,” commented AMD CEO Lisa Su.

The transaction is expected to close in the first half of 2025, pending regulatory approval. It involves a combination of cash and stock payments, with an additional payment of up to $400 million contingent on achieving certain performance targets.

ZT Systems collaborates with major chip manufacturers like Nvidia and Intel in the field of server solutions for data storage, graphics processors, high-performance computing, and 5G.

Earlier, AMD aimed to achieve $4 billion in revenue from AI chip sales by the end of 2024.