AMD to acquire ZT Systems for $4.9 billion, boosting data center efforts

AMD is aiming to more strongly compete with rival NVIDIA in the AI space with the ZT Systems acquisition.

ZT Systems
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NVIDIA’s surge in valuation has been the financial story of 2024 thanks to the AI boom, and rival AMD is looking to strengthen its own efforts. AMD has acquired ZT Systems, a company that specializes in cloud and telecom engineering, to bolster its AI efforts.

AMD’s acquisition of ZT Systems was reported today by Bloomberg. The $4.9 billion deal will see AMD take on total ownership of ZT Systems, though the company plans to sell its manufacturing wing to avoid competing with partners like Dell and HP.

An AMD processing chip.

Source: AMD

“AI is the most transformational technology of the last 50 years and our No. 1 strategic priority,” said AMD CEO Lisa Su, who also confirmed AMD’s plans to retain 1,000 ZT Systems engineers. She went on to say that these engineers “understand the challenges of designing and managing high-performance and high-density systems at a massive scale.”

AMD stock responded positively to the news of the acquisition, Climbing as high as $153.89 on the day, representing a roughly 3.5% increase. AMD certainly has a lot of ground to make up for if it wants to properly compete with NVIDIA, and you can expect to read the latest business updates from both companies here on Shacknews.

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Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Scream nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_

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