Today, AMD announced the signing of a definitive agreement to acquire ZT Systems, a leading provider of AI infrastructure for the world’s largest hyperscale computing companies. This strategic transaction is a major step in AMD’s AI strategy to deliver leadership AI training and inferencing solutions based on innovation across silicon, software, and systems. AMD agreed to buy ZT Systems in a cash and stock transaction valued at $4.9 billion, including a contingent payment of up to $400 million based on certain post-closing milestones.
ZT Systems’ extensive experience designing and optimizing cloud computing solutions will also help cloud and enterprise customers significantly accelerate the deployment of AMD-powered AI infrastructure at scale.
Based in Secaucus, New Jersey, ZT Systems has over 15 years of experience designing and deploying data center AI compute and storage infrastructure at scale for the largest global cloud companies. And ZT Systems’ design, integration, manufacturing and deployment capabilities have made them one of the leading providers of AI training and inference infrastructure.
Following the closing of the transaction, ZT Systems will join the AMD Data Center Solutions Business Group. And ZT CEO Frank Zhang will lead the manufacturing business and ZT President Doug Huang will lead the design and customer enablement teams, reporting to AMD Executive Vice President and General Manager Forrest Norrod. AMD will be seeking a strategic partner to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business.
The acquisition of ZT Systems marks another in a series of investments by AMD to significantly strengthen the company’s AI capabilities. In the last year, AMD has invested over $1 billion to expand the AMD AI ecosystem and strengthen the company’s AI software capabilities.
The deal has been unanimously approved by the AMD Board of Directors. The acquisition is currently expected to close in the first half of 2025, subject to certain regulatory approvals and other customary closing conditions. AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.
Citi is acting as exclusive financial advisor to AMD and Latham & Watkins is serving as its legal advisor. Goldman Sachs is acting as exclusive financial advisor to ZT Systems and Paul, Weiss is serving as its legal advisor.
KEY QUOTES:
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers. ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps. Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems’ industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners.”
– AMD Chair and CEO Dr. Lisa Su
“We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing. For almost 30 years we have evolved our business to become a leading provider of critical computing and storage infrastructure for the world’s largest cloud companies. AMD shares our vision for the important role our technology and our people play designing and building the computing infrastructure powering the largest data centers in the world.”
– Frank Zhang, CEO of ZT Systems
