AMD to acquire infrastructure player ZT Systems for $4.9B to amp up its AI ecosystem play

AMD is acquiring ZT Systems for $4.9B to enhance its AI ecosystem, with the deal closing in H1 2025.

: AMD announced the acquisition of ZT Systems for $4.9 billion to enhance its AI and computing infrastructure capabilities. The acquisition includes a mix of cash and stock with a contingent payment of up to $400 million. ZT Systems will be integrated into AMD’s Data Center Solutions Business Group.

AMD, the chipmaker trailing Nvidia in the AI market, has revealed plans to acquire ZT Systems for $4.9 billion, a deal structured with both cash and stock, plus a contingent $400 million payment based on performance metrics. ZT Systems, founded in 1994 and based in New Jersey, specializes in compute design and infrastructure for AI, cloud, and general-purpose computing.

The acquisition aims to fortify AMD's position in AI systems design, involving silicon, software, and systems. This move is expected to help AMD sell more chips and integrate ZT Systems' expertise into its Data Center Solutions Business Group, with ZT CEO Frank Zhang leading AMD’s manufacturing business and President Doug Huang overseeing design and customer enablement teams.

Dr. Lisa Su, AMD's CEO, emphasized that this step aligns with AMD's long-term AI strategy, enhancing its capabilities in delivering scalable AI infrastructure. ZT Systems’ role in the computing infrastructure of major cloud companies underscores the potential of this acquisition. The transaction is slated to finalize in the first half of 2025.

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