![AMD Acquires ZT Systems for $4.9 Billion To Expand Its Data Center AI Capabilities AMD Acquires ZT Systems for $4.9 Billion To Expand Its Data Center AI Capabilities](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib7IstxXRLGzRoBwLtpgTTPWsxUNNhc-ONENnEVRaodVFgNCorQS4RQUi7ky1SSweMCHhWeHjJBkdmOBjhB0jAzuNnwgZvkqBya5jQsLh6_kuCEIu2Ri_KXsusr2Z4KzIJE3_DxyHmPexzaXui1bnTio-L3XWBqwv4EXzSt2UDjOBd8E31bCNLkF8IVdo/s16000-rw/Amd-ZT_systems_20240820_175745_0000.png)
AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025.
This acquisition is expected to significantly enhance AMD's capabilities in the data center and AI markets. By integrating ZT Systems' expertise in custom server solutions, AMD aims to provide more comprehensive and innovative solutions to meet the growing demands of cloud and AI infrastructure.
This acquisition also positions AMD to better compete with other major players in the industry, such as Intel and NVIDIA, by expanding its market reach and strengthening its product offerings.
Upon completion of the acquisition, ZT Systems will join 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 General Manager Forrest Norrod.
ZT Systems is a prominent provider of server solutions, specializing in creating cloud-enabling server infrastructure for leading cloud and telecom providers. They design, manufacture, and deploy custom solutions that balance cost, capability, and creativity to meet complex server needs.
Founded in 1994, by Frank Zhang, and based in New Jersey, ZT Systems focuses on hyperscale cloud computing, cloud storage, artificial intelligence, and machine-to-machine transactions.
Initially, ZT Systems focused on providing custom server solutions for various industries. Their emphasis on quality and customization helped them build a strong reputation. Over the years, ZT Systems expanded its capabilities to address the needs of hyperscale cloud computing, AI, and telecom providers. The company leveraged its engineering expertise and global manufacturing capabilities to deliver high-performance, cost-effective solutions. Headquartered in Secaucus, New Jersey, the company continuously innovated, adapting to the rapidly changing technology landscape. It focused on developing solutions for complex compute, storage, and accelerator needs, ensuring they stayed ahead of industry trends.
Besides, ZT Systems formed strong partnerships with leading technology suppliers like NVIDIA and Intel, enhancing their ability to provide cutting-edge server solutions.
Last year in October, ZT Systems announced the acquisition of a new manufacturing site in the Greater Austin, Texas area. This facility is expected to bolster their production capabilities and support the growing demand for their advanced server solutions.
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