2024-08-20
AMD announced on August 19, 2024, an
expansion of its data center AI systems capabilities with the acquisition of ZT
Systems, a provider of AI infrastructure for hyperscale computing providers.
This strategic move is aimed at
accelerating the deployment of optimized rack-scale solutions to address the
growing data center AI accelerator market, which is expected to reach $400
billion by 20271.
The acquisition, valued at $4.9
billion, includes a mix of cash and stock, with a contingent payment of up to
$400 million based on post-closing milestones.
AMD’s Chair and CEO, Dr. Lisa Su,
stated that this acquisition is a major step in AMD’s long-term AI strategy,
aiming to deliver leadership training and inferencing solutions rapidly
deployed at scale across cloud and enterprise customers3.
ZT Systems brings over 15 years of
experience in designing and deploying data center AI compute and storage
infrastructure at scale for the world’s largest cloud companies.
This expertise is expected to
complement AMD’s silicon and software capabilities, enhancing their ability to
deliver end-to-end data center AI infrastructure.
The transaction is expected to be
accretive on a non-GAAP basis by the end of 2025. With this acquisition, AMD is
poised to strengthen its position in the AI and data center markets
significantly.
ZT Systems is a company that designs
and manufactures high-performance computing solutions, focusing primarily on
custom server and data center hardware.
Founded in 1994 and headquartered in
Secaucus, New Jersey, ZT Systems specializes in building customized solutions
for large-scale cloud computing, hyperscale, and enterprise data centers.
The company works closely with some of
the world's largest cloud service providers and technology companies to deliver
infrastructure tailored to their specific needs.
ZT Systems' offerings include:
Custom Servers: Tailored to
the needs of specific clients, these servers are optimized for cloud computing,
data analytics, and other high-demand applications.
Storage Solutions: High-capacity
and high-performance storage systems designed for enterprise environments.
Networking Products: Networking
hardware that ensures high-speed data transfer within data centers.
Racks and Power Systems: Complete rack
solutions with integrated power and cooling, designed for efficient deployment
and operation in data centers.
The company is known for its ability to
rapidly scale production and deliver custom-engineered solutions that meet the
specific requirements of its clients, often with a focus on efficiency,
performance, and cost-effectiveness.
This acquisition is expected to bolster
AMD’s position against competitors like Nvidia by expanding its AI portfolio
and providing optimized rack-scale solutions for the rapidly growing data
center AI accelerator market.
