AMD Buys ZT Systems, Chasing On-Prem AI Infrastructure Opportunities

ZT Systems will give AMD the system design capabilities to drive on-premises AI infrastructure and data center development.

Chipmaker Advanced Micro Devices (AMD) is acquiring ZT Systems, a data center designer and server manufacturer, in a strategic move to enhance its capabilities in AI infrastructure development. This acquisition is clearly aimed at strengthening AMD’s competitive position against rival Nvidia, a dominant player in artificial intelligence. Notably, the deal also underscores AMD’s belief that advanced AI systems will increasingly be deployed on-premises.

AMD is paying $5 billion for the New Jersey-based company, which specializes in designing servers, rackmounts, and other data center infrastructure. ZT Systems offers a value proposition by creating blueprints for advanced data center systems that power cloud computing and artificial intelligence. The deal, expected to close in the first half of 2025, follows AMD’s smaller acquisition of Finland-based Silo AI, which focuses on helping customers integrate artificial intelligence into their products.