AMD Strengthens AI Capabilities with $4.9B Acquisition of ZT Systems
AMD boosts its artificial intelligence portfolio by acquiring data center infrastructure leader ZT Systems in a $4.9 billion deal.
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Highlights
- AMD expands its artificial intelligence (AI) portfolio through the acquisition of ZT Systems, a prominent data center infrastructure provider.
- The $4.9 billion cash-and-stock transaction includes a $400 million contingent payment based on milestone achievements.
- CEO Dr. Lisa Su describes the acquisition as a pivotal advancement in AMD’s long-term AI growth strategy.
Advanced Micro Devices (AMD) has made a significant move to enhance its presence in the AI sector by acquiring ZT Systems, a key player in data center infrastructure.
The deal, valued at $4.9 billion, combines cash and stock components and features an additional contingent payment of $400 million tied to future performance targets.
AMD CEO Labels Acquisition a Critical Step in AI Strategy
Dr. Lisa Su, AMD’s CEO, emphasized that integrating ZT Systems marks a crucial phase in the company’s comprehensive AI strategy aimed at delivering leading-edge training and inference solutions that can be efficiently scaled across cloud and enterprise customers. She highlighted that this acquisition will greatly enhance AMD’s data center AI system capabilities and customer support services.
Over the past year, AMD has invested upwards of $1 billion to expand its AI ecosystem and boost its AI software development, supplementing its ongoing internal research and development efforts.
The acquisition is expected to finalize in the first half of 2025.
Following the announcement, AMD’s stock, which had remained steady throughout the year, climbed 2.2% to $151.84 shortly after market opening on Monday.
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