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AMD , the chipmaker blistering on the heels of Nvidia in the AI subspecies , today announced a big learning to boost its position as an “ ecosystem ” partner for company building big AI businesses : It isacquiring ZT Systems , which provides compute design and substructure for AI , cloud and general function computing , for $ 4.9 billion . The deal is a mix of cash and line of descent and includes a contingent payment of up to $ 400 million if certain performance metrics are conform to .
The design is to incorporate ZT Systems ’ computing substructure design business . AMD said it will look to sell ZT Systems ’ data point center infrastructure manufacturing business to “ a strategical partner . ”
Based in New Jersey , ZT Systems has been in camera hold since it was ground in 1994 , and has disclosed only one external funding bout — it raised $ 850 million in debt in 2023 , according toPitchBook . It works close with swelled chipmakers such asNvidiaandIntelacross areas such as host solutions for storage , GPU / throttle valve , high - performance computing , 5 G and border computing .
AMD said the deal will give it a deeper bench of expertise in AI systems design involving not just silicon , but package and arrangement — that could help AMD sell more of its chips ( and systems powered by its chip ) to client . AMD said it has already invest about $ 1 billion in building its broader ecosystem .
There is a need for that enhanced approach : As AI system develop more complex , one major precedence for big technical school companies building and operating them will be to increase the efficiency of their systems for the most compute - heavy scene such as AI good example training and inferencing .
“ Our acquisition of ZT Systems is the next major pace in our long - terminal figure AI scheme to deliver leadership training and inferencing solution that can be rapidly deployed at scale across cloud and enterprise customers , ” AMD chair and CEO , Dr. Lisa Su , said in a statement . “ ZT adds earth - stratum systems design and rack - scale solution expertise that will significantly beef up our data point center AI systems and client enablement capability . This attainment also build on the investments we have made to speed our AI ironware and software roadmaps . Combining our high - performance Instinct AI throttle , EPYC CPU , and connection ware portfolio with ZT Systems ’ manufacture - conduct data center systems expertise will enable AMD to deliver end - to - end information center AI infrastructure at scale of measurement with our ecosystem of OEM and ODM partners . ”
ZT Systems does not disclose the names of its clients , but it appear to have increase its profile in recent eld for providing specialist support in some of the thorniest and most expensive aspects of AI computing architecture design .
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Its chief executive officer Frank Zhang will lead AMD ’s manufacturing business sector . ZT Systems will become a part of AMD ’s Data Center Solutions Business Group .
“ We are excited to connect AMD and together roleplay an even larger role designing the AI infrastructure that is defining the time to come of computing , ” said Zhang , CEO of ZT Systems , in a program line . “ For almost 30 years we have evolved our occupation to become a leading provider of critical computation and store infrastructure for the world ’s enceinte cloud company . AMD share our vision for the crucial function our applied science and our mass play designing and building the computer science base powering the largest data centers in the human race . ”
ZT chairman Doug Huang will lead the designing and customer enablement team , and both will report to AMD executive vice prexy and general manager , Forrest Norrod .
The deal is expected to shut in the first half of 2025 .
