AMD Acquires ZT Systems to Expand Data Center AI Systems Capabilities

AMD has announced its acquisition of ZT Systems, a leading provider of AI infrastructure for the world’s largest hyperscale computing companies. The strategic agreement marks the next step in AMD’s AI strategy to deliver leadership AI training and inferencing solutions based on innovating across silicon, software, and systems.

AMD has agreed to acquire ZT Systems in a cash and stock transaction valued at $4.9 billion, inclusive of a contingent payment of up to $400 million built on certain post-closing milestones. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.

AMD Chair and CEO Dr. Lisa Su says, “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. Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners.”

Adding to that, Frank Zhang, CEO of ZT Systems, says, “We are excited to join AMD and together play an even larger role in designing the AI infrastructure that is defining the future of computing.”

After the deal is sealed, ZT Systems will join the AMD Data Center Solutions Business Group. Further, ZT CEO Frank Zhang will lead the manufacturing business, and ZT President Doug Huang will lead the design and customer enablement teams; both will report to AMD Executive Vice President and General Manager Forrest Norrod. Furthermore, AMD will seek a strategic partner to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business.

The transaction has been unanimously approved by the AMD Board of Directors. The acquisition is anticipated to be finalized in the first half of 2025, pending certain regulatory approvals and other standard closing conditions.