Semiconductor giant AMD is set to acquire cloud computing firm ZT Systems for $4.9 billion, aiming to enhance its position against rivals such as Nvidia. The acquisition is expected to boost AMD’s silicon and software capabilities and accelerate the large-scale deployment of AI infrastructure.
Over the past year, AMD has invested over $1 billion to expand its AI ecosystem and strengthen its AI software capabilities, complementing its ongoing R&D efforts. “Our acquisition of ZT Systems accelerates our AI strategy,” said Dr. Lisa Su, AMD’s CEO.
“Together, we’ll offer comprehensive AI infrastructure solutions, making it easier for cloud and enterprise customers to deploy AMD-powered AI at scale.”
Dr. Su emphasised that scaling AI systems is AMD’s top priority. The acquisition of ZT Systems, a player in AI infrastructure for hyperscale computing, will enhance AMD’s ability to produce high-performance AI chips.
“We are excited to join AMD and play a larger role in designing the AI infrastructure that is defining the future of computing,” said Frank Zhang, CEO of ZT Systems.
ZT Systems’ CEO Frank Zhang will join AMD and report to Forrest Norrod, AMD’s data centre chief.
Both AMD and Nvidia rely heavily on Taiwan Semiconductor Manufacturing Company (TSMC) for advanced chip production. This acquisition will help AMD challenge Nvidia’s dominance in the AI hardware market and potentially increase its market share.
The deal, expected to close in the first half of 2025, is subject to regulatory approvals.
Following the acquisition, ZT Systems’ manufacturing business and leadership will remain intact, while its design and customer enablement teams will integrate into AMD’s Data Center Solutions Business Group.
Based in Secaucus, New Jersey, ZT Systems has over 15 years of experience in managing data centre AI infrastructure for major global cloud companies, positioning it as a leading provider of AI training and inference solutions.