{"id":6921,"date":"2024-08-20T15:07:49","date_gmt":"2024-08-20T15:07:49","guid":{"rendered":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/08\/20\/amd-to-acquire-zt-systems-for-us4-9-billion-to-enhance-ai-infrastructure\/"},"modified":"2024-08-20T15:07:49","modified_gmt":"2024-08-20T15:07:49","slug":"amd-to-acquire-zt-systems-for-us4-9-billion-to-enhance-ai-infrastructure","status":"publish","type":"post","link":"https:\/\/dailywashingtoninsider.com\/index.php\/2024\/08\/20\/amd-to-acquire-zt-systems-for-us4-9-billion-to-enhance-ai-infrastructure\/","title":{"rendered":"AMD to Acquire ZT Systems for US$4.9 Billion to Enhance AI Infrastructure"},"content":{"rendered":"<p><strong>Advanced Micro Devices (AMD) (NASDAQ:AMD) is looking to further <\/strong><strong>enhance its artificial intelligence (AI) infrastructure with the <\/strong><strong>acquisition of AI service provider ZT Systems for US$4.9 billion.<\/strong><\/p>\n<p>Announced on Monday (August 19), the definitive agreement is AMD&#8217;s latest move to reinforce its position in the data center market. In the last year it has spent over US$1 billion to enhance its AI ecosystem and software capabilities as it seeks to better compete with AI powerhouse NVIDIA (NASDAQ:NVDA), which offers more complete AI systems. <span><\/span><\/p>\n<p>The deal, set to be completed in the first half of 2025, will be financed with 75 percent cash and 25 percent stock.<\/p>\n<\/p>\n<p>AMD expects the purchase to be accretive to its non-GAAP earnings by the end of next year. Reuters quotes CFO Jean Hu as saying that the acquisition is seen enhancing the company&#8217;s revenue growth starting in 2026.<\/p>\n<p>ZT Systems is known for its expertise in designing and deploying large-scale data center infrastructure. The company\u2019s systems are used by major hyperscale computing providers, making it a key player in the data center industry. <\/p>\n<p>As mentioned, the acquisition aligns with AMD\u2019s strategy of expanding its AI hardware and infrastructure offerings, which are critical for handling the increasing demands of AI applications and cloud computing.<\/p>\n<p>AMD\u2019s CEO, Lisa Su, highlighted the strategic importance of the acquisition, stating that ZT Systems\u2019 capabilities will accelerate the deployment of AMD\u2019s AI graphics processing units at scale. <\/p>\n<p>&#8216;Combining our high-performance Instinct AI accelerator, EPYC CPU, and networking product portfolios with ZT Systems\u2019 industry-leading data center systems expertise will enable AMD to deliver end-to-end data center AI infrastructure at scale with our ecosystem of OEM and ODM partners,&#8217; she added in the company\u2019s press release.<\/p>\n<p>As part of the transaction, AMD plans to divest ZT Systems\u2019 manufacturing business and will seek a strategic partner to acquire this segment. However, the acquisition will retain around 1,000 of ZT Systems\u2019 2,500 employees.<\/p>\n<p>ZT Systems\u2019 CEO, Frank Zhang, will join AMD and oversee the integration of the company\u2019s design and customer enablement teams within AMD\u2019s Data Center Solutions Business Group.<\/p>\n<p>Shareholders reacted positively to the news, with AMD&#8217;s share price ending Monday up 12.46 percent.  <\/p>\n<p><span><\/span><strong>Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n<div>This post appeared first on investingnews.com<\/div>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Advanced Micro Devices (AMD) (NASDAQ:AMD) is looking to further enhance its artificial intelligence (AI) infrastructure&hellip;<\/p>\n","protected":false},"author":1,"featured_media":6922,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[],"class_list":["post-6921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/6921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/comments?post=6921"}],"version-history":[{"count":0,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/posts\/6921\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media\/6922"}],"wp:attachment":[{"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/media?parent=6921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/categories?post=6921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailywashingtoninsider.com\/index.php\/wp-json\/wp\/v2\/tags?post=6921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}