AMD Will Now Be Able to “Sell More GPUs” as the Company Acquires ZT Systems for $5 Billion

AMD announced that it has closed its acquisition of ZT Systems, a provider of servers and computing infrastructure for hyperscalers. The deal, announced in August last year, is worth $4.9 billion. According to ComputerBase, the acquisition of ZT Systems will allow AMD to offer a full range of data center solutions in a single package.

Image Source: AMD

Now, in addition to processors and AI accelerators, AMD will be able to offer networking components and software, relying entirely on its own open-source ROCm platform. The company noted that the acquisition will create a new class of end-to-end AI solutions and accelerate the design and deployment of AI infrastructure based on AMD products optimized for cloud environments. AMD CEO Lisa Su told Reuters about the deal: “The main benefit that AMD will get from this is the ability to sell more GPUs.”

AMD expects the transaction to be accretive to non-GAAP earnings per share by the end of 2025.

As previously announced, former ZT Systems CEO Frank Zhang will take on the manufacturing role as senior vice president of ZT Manufacturing. Former ZT Systems President Doug Huang will become senior vice president of Data Center Platform Engineering. In this role, he will lead the engineering and customer support teams, working closely with AMD’s Data Center Solutions and AI Group to accelerate time to market for AI-powered data center solutions.

Both executives will report to AMD executive vice president and general manager Forrest Norrod.

AMD also said it is “actively engaging with several potential strategic partners” with the goal of selling its leading U.S. data center infrastructure business ZT Systems in 2025.