AMD has finalized its acquisition of hyperscale server manufacturer ZT Systems for $4.9 billion, following a $1 billion investment the chipmaker previously made.
ZT Systems’ U.S.-based data center infrastructure manufacturing business is expected to be sold off later this year, with AMD currently in discussions with multiple strategic partners.
The company designs, integrates, manufactures, and deploys servers for major cloud providers like Amazon Web Services (AWS) and Microsoft Azure, generating an estimated $10 billion in annual revenue and delivering hundreds of thousands of servers each year.
A Strategic Move in AI and Data Centers
With the acquisition, ZT Systems will operate under AMD’s Data Center Solutions business unit, led by Executive Vice President Forrest Norrod.
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“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 Norrod.
He added that acquiring ZT Systems is a major milestone in AMD’s AI strategy, allowing the company to provide scalable, ready-to-deploy AI training and inference solutions. These solutions will be built on an open ecosystem integrating open-source software, industry-standard networking technologies, and ZT Systems’ expertise in system design.
Leadership Changes and Future Plans
-Doug Huang, former President of ZT Systems, will serve as Senior Vice President of Data Center Platform Engineering, reporting to Norrod.
-Frank Zhang, ZT Systems’ founder and former CEO, will become SVP of ZT Manufacturing, overseeing the divestiture of the manufacturing division.
