Strategic Move to Strengthen AI Infrastructure Capabilities
AMD has officially completed its acquisition of ZT Systems, a key provider of AI and compute infrastructure for hyperscale data centers. This move integrates AMD’s CPU, GPU, and networking silicon with ZT Systems’ rack-scale expertise, reinforcing AMD’s push into the growing AI accelerator market, projected to reach $500 billion by 2028.
“This acquisition marks a major step forward in our AI infrastructure strategy.”
The acquisition aligns with AMD’s strategy to enhance AI deployment capabilities at scale, leveraging open-source AMD ROCm™ software and advanced system design. The transaction is expected to be accretive on a non-GAAP basis by the end of 2025.
“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,” said Forrest Norrod, Executive Vice President and General Manager of AMD’s Data Center Solutions business unit. “Acquiring ZT Systems is a significant milestone in our AI strategy, allowing us to offer optimized, ready-to-deploy solutions that support our open ecosystem approach.”
Former ZT Systems executives Frank Zhang and Doug Huang will assume leadership roles at AMD, focusing on manufacturing divestiture and AI infrastructure acceleration. AMD is currently exploring strategic partnerships to sell ZT Systems’ data center manufacturing business later this year.