AMD makes it clear AI is a high priority with $4.9 billion ZT Systems buyout
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It’s pretty clear these days that AI is going to play a big part in the future of the tech industry with everything from the best CPUs and GPUs to OLED TVs now featuring AI capabilities. That said it’s not only devices with onboard AI that are the focus of major operations right now, and this recent move by AMD has definitely been made with larger-scale AI solutions in mind.
AMD has recently announced a huge deal in which they will acquire ZT Systems. The deal which is valued at a whopping $4.9 billion is part of AMD’s wider effort to up its artificial intelligence capabilities in order to better compete with its major rival Nvidia which has seen a boon in its market value of late thanks to the surge in AI interest.
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Over the past year, AMD has already invested over $1 billion in expanding its AI capacity, and with this latest deal that outlay is set to increase exponentially.
Who is ZT Systems?
Founded in 1994, ZT Systems designs and manufactures custom server and storage solutions, primarily for large-scale data centers and cloud infrastructure providers. From its headquarters in Secaucus, New Jersey the company has made a name for itself by providing fully integrated systems that encompass hardware, software, and services for cloud computing.
With the recent surge in demand for cloud computing and data processing power thanks to the AI “arms race”, ZT Systems clearly caught the eye of AMD and are set to become a major part of their long-term AI strategy. AMD chair and CEO Lisa Su earlier posted on X:
“ZT's world class systems expertise to enable rapid deployment of @AMD AI solutions at scale for our cloud and enterprise customers!”
What this means for AMD
In its press release, AMD stated that the buyout is only one of a series of investments by the company to up their AI game in the years to come. ZT Systems boasts world-class design and customer enablement teams as well as extensive AI systems expertise which when combined with AMD’s hardware and software capabilities should create an AI-based force to be reckoned with.
AMD has also stated that they are looking to sell ZT Systems’ New Jersey-based data center infrastructure manufacturing section.
Nvidia has been the top dog when it comes to AI and has left other companies in the lurch trying to catch up with them. That being said, AMD’s shares rose in value after this announcement and it’s clear that investments such as this may go some way to closing the gap between AMD and their major rival.
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