AMD Completes ZT Systems Acquisition to Enhance AI Data Center Infrastructure
AMD, the semiconductor giant, has acquired ZT Systems, a top provider of AI and general-purpose computing infrastructure for leading hyperscale cloud providers. The deal adds to AMD's leadership in the AI infrastructure market by combining its CPU, GPU, and networking silicon with ZT Systems' system-level design and integration expertise.
Expanding AMD's AI Capabilities
Through this purchase, AMD will be able to deliver end-to-end, ready-to-deploy AI solutions optimized for hyperscale environments. The acquisition adds to AMD's strengths in hardware and software, including its open-source ROCm platform and sophisticated data center system architecture.
Forrest Norrod, executive vice president and general manager, Data Center Solutions business unit at AMD, said, “With the rapid pace of innovation in AI, reducing the end-to-end design and deployment time of cluster-level data center AI systems will be a significant competitive advantage for our customers”
He also mentioned that acquiring ZT Systems marked a significant milestone in their AI strategy, aiming to deliver leadership training and inferencing solutions optimized for their customers' unique environments.
These solutions would be ready-to-deploy at scale and based on an open ecosystem approach, combining open-source software, industry-standard networking technologies, and ZT Systems' expertise in systems design and customer enablement.
He also expressed excitement about welcoming Frank Zhang, Doug Huang, and the ZT Systems team to AMD, emphasizing that together, they would offer customers both choice and speed to market, enabling them to invest in areas where they wish to differentiate their AI offerings.
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Financial Outlook and Strategic Partnerships
AMD forecasts the acquisition to be accretive on a non-GAAP basis by the fourth quarter of 2025. The firm is also negotiating with a number of strategic partners to acquire ZT Systems' US manufacturing facilities in the following year.
