AMD Acquires ZT Systems for $4.9 Billion in AI Push

AMD is set to buy ZT Systems, a server maker, in a cash-and-stock deal valued at $4.9 billion to bolster its AI capacity. AMD plans to sell its server manufacturing business post-acquisition. The deal, approved by AMD’s board, is expected to close in the first half of next year.

AMD is acquiring server maker ZT Systems in a cash-and-stock deal valued at USD 4.9 billion, aiming to enhance its artificial intelligence capabilities and better compete with Nvidia.

Zt Systems, headquartered in Secaucus, New Jersey, has been providing data centre and storage infrastructure solutions to cloud companies for over a decade. Post-acquisition, it will become part of AMD's Data Centre Solutions Business Group.

AMD intends to sell its US-based data centre infrastructure manufacturing business after the deal closes. The transaction, expected to close in the first half of next year, has been approved by AMD's board. Shares of AMD rose over 2% before market opening.