Proactive Investors - Advanced Micro Devices (NASDAQ:AMD) Inc (NASDAQ:AMD, ETR:AMD) announced it is acquiring hyperscale solutions provider ZT Systems in a cash and stock transaction valued at $4.9 billion, the latest in a series of investments made by the chipmaker to bolster its AI capabilities.
In the past 12 months, the firm has invested more than $1 billion to expand its AI ecosystem and strengthen its AI software capabilities, AMD highlighted in a statement on Monday.
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” AMD CEO Lisa Su said.
“ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps.”
Frank Zhang, ZT Systems CEO, added: “We are excited to join AMD and together play an even larger role designing the AI infrastructure that is defining the future of computing.”
Upon closing of the transaction, ZT Systems will join the AMD Data Center and Solutions Business Group.
The transaction is expected to close in the first half of 2025 and be accretive on a non-GAAP basis by the end of next year.
Shares of AMD traded higher on the news, adding 2.7% at about $153 late morning on Monday.