AMD Acquires Hyperscale Systems Developer ZT Systems
Goal of acquisition is for AMD to greatly expand its data center artificial intelligence systems capabilities, company says.
The strategic transaction marks a major step in AMD’s AI strategy to deliver AI training and inferencing solutions. Image courtesy of AMD.
August 27, 2024
AMD reports the signing of a definitive agreement to acquire ZT Systems, a provider of artificial intelligence (AI) infrastructure for large hyperscale computing companies. The strategic transaction marks a major step in AMD’s AI strategy to deliver AI training and inferencing solutions based on developing across silicon, software and systems, the company reports.
ZT Systems’ experience designing and optimizing cloud computing solutions will also help cloud and enterprise customers accelerate the deployment of AMD-powered AI infrastructure at scale, according to AMD.
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 based on certain post-closing milestones. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” says AMD Chair and CEO Dr. Lisa Su. “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.”
Headquartered in Secaucus, NJ, ZT Systems has more than 15 years of experience designing and deploying data center AI compute and storage infrastructure at scale for the largest global cloud companies. ZT Systems’ design, integration, manufacturing and deployment capabilities have made them a leading provider of AI training and inference infrastructure, according to AMD.
“We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing,” said Frank Zhang, CEO of ZT Systems. “For almost 30 years we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies.”
Following transaction close, ZT Systems will join the AMD Data Center Solutions Business Group. ZT CEO Frank Zhang will lead the manufacturing business and ZT President Doug Huang will lead the design and customer enablement teams, both reporting to AMD Executive Vice President and General Manager Forrest Norrod. AMD will seek a strategic partner to acquire ZT Systems’ U.S.-based data center infrastructure manufacturing business.
The acquisition of ZT Systems marks the latest in a series of investments by AMD to strengthen the company’s AI capabilities, the company notes. In the last 12 months, in addition to increasing organic R&D activities, AMD has invested more than $1 billion to expand the AMD AI ecosystem and strengthen the company’s AI software capabilities.
Sources: Press materials received from the company and additional information gleaned from the company’s website.
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