In a strategic move to bolster its position in the rapidly evolving AI landscape, AMD announced today its acquisition of ZT Systems, a company known for its expertise in compute design and infrastructure for AI, cloud, and general-purpose computing. The $4.9 billion deal, a mix of cash and stock, includes a contingent payment of up to $400 million based on performance metrics.
This acquisition marks a significant step in AMD’s long-term strategy to establish itself as a leading “ecosystem” partner for companies developing large-scale AI systems. By incorporating ZT Systems’ computing infrastructure design capabilities, AMD aims to enhance its data center AI systems and expand its customer enablement services. As part of this plan, AMD also intends to sell ZT Systems’ data center infrastructure manufacturing business to a strategic partner, thereby focusing its efforts on AI systems design.
Founded in 1994 and based in New Jersey, ZT Systems has grown into a key player in the AI infrastructure space, collaborating with major chipmakers like Nvidia and Intel. Its expertise spans server solutions for storage, GPU/accelerators, high-performance computing, 5G, and edge computing. Despite being privately held, ZT Systems raised $850 million in debt in 2023, reflecting its significant role in the industry.
AMD’s acquisition is driven by the increasing complexity of AI systems and the growing demand for efficient infrastructure to support compute-heavy tasks such as AI model training and inferencing. Dr. Lisa Su, AMD’s chair and CEO, emphasized the importance of this acquisition in strengthening AMD’s AI capabilities: “ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities.”
With this acquisition, AMD will integrate ZT Systems into its Data Center Solutions Business Group, with ZT’s CEO Frank Zhang leading AMD’s manufacturing business and ZT president Doug Huang heading the design and customer enablement teams. Both executives will report to Forrest Norrod, AMD’s executive vice president and general manager.
ZT Systems’ integration into AMD is expected to play a crucial role in the design and deployment of AI infrastructure at scale, supporting the company’s broader ecosystem of OEM and ODM partners. The deal is anticipated to close in the first half of 2025, marking a new chapter in AMD’s expansion into AI and data center solutions.
