The strategic importance of this acquisition brings invaluable experience in designing large-scale systems and solutions that will strengthen AMD’s capabilities in AI systems for data centers.
AMD, led by Lisa Sureached an agreement to acquire ZT Systemsa server specialist, for a value of US$4.9 billion. This acquisition, which will be paid in a combination of cash and stock, aims to strengthen AMD’s position in the data center segment, particularly in the growing artificial intelligence (AI) market, where it competes with Nvidia. Following the announcement, AMD shares rose 2%.
With the acquisition, ZT Systems will be integrated into AMD’s data center solutions group, retaining its design and customer support teams, while AMD plans to sell ZT’s manufacturing division. ZT Systems, a privately held company, has a strong track record in manufacturing servers for large data centers, key customers that are investing heavily in new AI capabilities.
Lisa Su highlighted the strategic importance of this acquisition, stressing that ZT brings invaluable experience in designing large-scale systems and solutions that will strengthen AMD’s capabilities in AI systems for data centers. This move adds to the investments AMD has made to accelerate its development in AI hardware and software, a crucial area for competition in today’s market.
The war for AI
The acquisition positions AMD as the second largest supplier of graphics processorsessential for the development of AI software, and reinforces its objective of taking the market leadership from Nvidia. AMD has invested more than 1 billion dollars in the last twelve months to expand its presence in this segment, and with the addition of ZT Systems, the company is well positioned to increase its market share.
Frank Zhang, CEO of ZT Systems, expressed his excitement about joining AMD and contributing to the design of the AI infrastructure that is shaping the future of computing. The deal, which has been approved by AMD’s board of directors and is expected to close in the first half of 2025, promises to be beneficial for the company, consolidating its growth in the data center AI market.
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The acquisition of ZT Systems not only strengthens AMD’s hardware offering, but also enables it to enhance its capabilities “above the chip” and “below the software” in AI servers. This is crucial in a market where systems and software integration has become a key factor for success.With this strategy, AMD seeks not only to compete in terms of technology, but also in the customization and optimization of solutions for its customers.
Source: Ambito
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