2024-08-19 18:14:48
American semiconductor manufacturer AMD has agreed to acquire ZT Systems in a cash and stock transaction worth $4.9 billion (€4.443 million), expanding its capabilities in artificial intelligence systems for data centers and competing with Nvidia.
The transaction, which has been unanimously approved by AMD’s board of directors and is expected to close in the first half of 2025, includes a contingent payment of up to $400 million based on the achievement of certain post-closing milestones in the operation and AMD confident that the ZT acquisition will eventually generate profits as early as 2025.
After the transaction closes, ZT Systems will be integrated into the AMD Data Center Solutions business group. ZT CEO Frank Zhang will lead the manufacturing business and ZT President Doug Huang will lead the design and customer enablement teams, both reporting to AMD Executive Vice President and CEO Forrest Norrod.
In addition, AMD will seek a strategic partner to acquire the industry-leading data center infrastructure manufacturing business of US-based ZT Systems. “The acquisition of ZT Systems is the latest in a series of investments by AMD to significantly strengthen the company’s AI capabilities,” indicated the multinational, which has invested more than $1 billion in the past 12 months, as well as increasing activities organic R&D . to expand AMD’s AI ecosystem and strengthen the company’s AI software capabilities.
“Our acquisition of ZT Systems is the next important step in our long-term AI strategy to deliver leadership training and inference solutions that can be rapidly deployed at scale to enterprise and cloud customers,” said the president and CEO AMD AMD Lisa Su.
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