AMD finalizes the acquisition of ZT Systems. With this move, the company aims to strengthen its position in the AI data center market. The acquisition is expected to help develop and deploy large-scale AI infrastructure more quickly.
AMD has completed the acquisition of ZT Systems. The American company provides systems and infrastructure for hyperscale data centers. The acquisition is part of AMD’s strategy to better address the growing demand for AI accelerators in data centers. The acquisition began in August 2024.
ZT Systems will be integrated into AMD’s Data Center Solutions division. The company brings expertise in rack-level systems, which will be combined with AMD’s existing CPU, GPU, and network chips. AMD’s open-source software platform ROCm will also play a role in the development of new AI solutions. The goal is to design and implement AI infrastructure more quickly, specifically for cloud environments.
Stronger AI Offering for AMD
The acquisition should enable AMD to deliver cluster-level AI systems to customers more quickly. According to AMD, this offers an advantage for companies looking to deploy AI solutions in their data centers. The combination of hardware, software, and system design should result in turnkey solutions.
ZT Systems founder Frank Zhang and former president Doug Huang will take on leadership roles within AMD. Zhang will be responsible for ZT Systems’ manufacturing activities, which AMD plans to sell to a strategic partner later this year. Huang will lead the engineering and customer teams within AMD’s data center platform.
The market for AI accelerators in data centers is estimated to be worth $500 billion by 2028. With the integration of ZT Systems, AMD aims to strengthen its position in this market. In the AI market, AMD plays the role of David, against the Goliath Nvidia. Nvidia does offer complete data center solutions for AI clusters, and entices other players to develop Nvidia-related blueprints for such installations. The acquisition of ZT Systems can help AMD to provide an answer.