AMD Completes Acquisition of ZT Systems
AMD (NASDAQ: AMD) has completed its acquisition of ZT Systems, a leading provider of AI and general-purpose compute infrastructure for hyperscale providers. The strategic transaction aims to address the $500 billion data center AI accelerator opportunity projected for 2028.
The acquisition combines AMD's GPU, CPU, and networking silicon with ZT Systems' rack-level expertise and AMD's open-source ROCm™ software. This integration will enable new end-to-end AI solutions and accelerate the deployment of AMD-powered AI infrastructure at scale.
The deal is expected to be accretive on a non-GAAP basis by the end of 2025. AMD is seeking strategic partners to acquire ZT Systems' U.S.-based data center infrastructure manufacturing business in 2025. Former ZT Systems executives Frank Zhang and Doug Huang have joined AMD's leadership team under Executive Vice President Forrest Norrod.
AMD (NASDAQ: AMD) ha completato l'acquisizione di ZT Systems, un fornitore leader di infrastrutture per il calcolo AI e general-purpose per fornitori hyperscale. La transazione strategica mira a sfruttare l'opportunità di $500 miliardi per gli acceleratori AI nei data center prevista per il 2028.
L'acquisizione combina i chip GPU, CPU e di rete di AMD con l'expertise di ZT Systems a livello di rack e il software open-source ROCm™ di AMD. Questa integrazione permetterà nuove soluzioni AI end-to-end e accelererà il dispiegamento di infrastrutture AI alimentate da AMD su larga scala.
Si prevede che l'affare sarà accretivo su base non-GAAP entro la fine del 2025. AMD sta cercando partner strategici per acquisire l'attività di produzione di infrastrutture per data center negli Stati Uniti di ZT Systems nel 2025. Gli ex dirigenti di ZT Systems Frank Zhang e Doug Huang si sono uniti al team di leadership di AMD sotto il Vice Presidente Esecutivo Forrest Norrod.
AMD (NASDAQ: AMD) ha completado su adquisición de ZT Systems, un proveedor líder de infraestructura de computación AI y de propósito general para proveedores hyperscale. La transacción estratégica tiene como objetivo aprovechar la oportunidad de $500 mil millones en aceleradores AI para centros de datos proyectada para 2028.
La adquisición combina los chips GPU, CPU y de red de AMD con la experiencia de ZT Systems a nivel de rack y el software de código abierto ROCm™ de AMD. Esta integración permitirá nuevas soluciones de AI de extremo a extremo y acelerará el despliegue de infraestructura AI impulsada por AMD a gran escala.
Se espera que el acuerdo sea acretivo en una base no-GAAP para finales de 2025. AMD está buscando socios estratégicos para adquirir el negocio de fabricación de infraestructura de centros de datos de ZT Systems con sede en EE. UU. en 2025. Los exejecutivos de ZT Systems Frank Zhang y Doug Huang se han unido al equipo de liderazgo de AMD bajo el Vicepresidente Ejecutivo Forrest Norrod.
AMD (NASDAQ: AMD)는 ZT Systems의 인수를 완료했습니다. ZT Systems는 하이퍼스케일 제공업체를 위한 AI 및 일반 목적의 컴퓨팅 인프라를 제공하는 선도적인 회사입니다. 이 전략적 거래는 2028년까지 예상되는 5000억 달러 규모의 데이터 센터 AI 가속기 기회를 겨냥하고 있습니다.
이번 인수는 AMD의 GPU, CPU 및 네트워킹 반도체와 ZT Systems의 랙 수준 전문지식, AMD의 오픈 소스 ROCm™ 소프트웨어를 결합합니다. 이 통합은 새로운 엔드 투 엔드 AI 솔루션을 가능하게 하고, AMD 기반 AI 인프라의 대규모 배포를 가속화할 것입니다.
이번 거래는 2025년 말까지 비-GAAP 기준으로 수익을 증가시킬 것으로 예상됩니다. AMD는 2025년에 ZT Systems의 미국 기반 데이터 센터 인프라 제조 사업을 인수하기 위해 전략적 파트너를 찾고 있습니다. 전 ZT Systems 임원인 Frank Zhang과 Doug Huang은 AMD의 부사장 Forrest Norrod 아래 리더십 팀에 합류했습니다.
AMD (NASDAQ: AMD) a finalisé son acquisition de ZT Systems, un fournisseur leader d'infrastructures de calcul AI et généralistes pour les fournisseurs hyperscale. Cette transaction stratégique vise à exploiter l'opportunité de 500 milliards de dollars pour les accélérateurs AI dans les centres de données prévue pour 2028.
L'acquisition combine les puces GPU, CPU et de mise en réseau d'AMD avec l'expertise de ZT Systems au niveau des racks et le logiciel open-source ROCm™ d'AMD. Cette intégration permettra de nouvelles solutions AI de bout en bout et accélérera le déploiement d'infrastructures AI alimentées par AMD à grande échelle.
Il est prévu que l'accord sera accrétif sur une base non-GAAP d'ici fin 2025. AMD recherche des partenaires stratégiques pour acquérir l'activité de fabrication d'infrastructures de centres de données de ZT Systems basée aux États-Unis en 2025. Les anciens dirigeants de ZT Systems, Frank Zhang et Doug Huang, ont rejoint l'équipe de direction d'AMD sous la direction du Vice-Président Exécutif Forrest Norrod.
AMD (NASDAQ: AMD) hat die Übernahme von ZT Systems abgeschlossen, einem führenden Anbieter von KI- und allgemeinen Recheninfrastrukturen für Hyperscale-Anbieter. Die strategische Transaktion zielt darauf ab, die 500 Milliarden US-Dollar umfassende Chance für KI-Beschleuniger in Rechenzentren, die für 2028 prognostiziert wird, zu nutzen.
Die Übernahme kombiniert AMDs GPU-, CPU- und Netzwerktechnologie mit der Rack-Ebene-Expertise von ZT Systems und AMDs Open-Source-Software ROCm™. Diese Integration wird neue End-to-End-KI-Lösungen ermöglichen und die Bereitstellung von AMD-betriebener KI-Infrastruktur in großem Maßstab beschleunigen.
Es wird erwartet, dass der Deal bis Ende 2025 auf nicht-GAAP-Basis wertsteigernd sein wird. AMD sucht strategische Partner, um das in den USA ansässige Geschäft von ZT Systems für die Herstellung von Rechenzentrumsinfrastruktur im Jahr 2025 zu übernehmen. Die ehemaligen ZT Systems-Führungskräfte Frank Zhang und Doug Huang sind dem Führungsteam von AMD unter dem Executive Vice President Forrest Norrod beigetreten.
- Targets $500 billion market opportunity in data center AI accelerators by 2028
- Expected to be financially accretive by end of 2025
- Enhances AMD's end-to-end AI solutions capabilities
- Accelerates time-to-market for data center AI solutions
- Additional costs and integration efforts required for manufacturing business divestiture
- Success dependent on finding strategic partners for manufacturing business acquisition
Insights
AMD's acquisition of ZT Systems represents a strategic vertical integration that significantly enhances their AI infrastructure capabilities. By combining their CPU, GPU, and networking silicon with ZT's rack-level expertise, AMD is positioning itself to deliver end-to-end AI solutions optimized for hyperscale environments - directly addressing a critical bottleneck in AI deployment: implementation time.
This move specifically targets the
Notably, AMD plans to divest ZT's manufacturing business while retaining the high-value design and engineering capabilities. This indicates a strategic focus on intellectual property and engineering talent rather than capital-intensive manufacturing operations, potentially improving margin structure while still capturing the value-added design expertise.
AMD's acquisition of ZT Systems demonstrates clear financial foresight with its explicit statement that the transaction will be accretive on a non-GAAP basis by the end of 2025. While the purchase price remains undisclosed, the expected accretion suggests the deal structure should enhance shareholder value in the medium term.
The strategic rationale is compelling: by targeting the projected
The planned divestiture of ZT's manufacturing business reveals AMD's capital allocation discipline - acquiring the high-margin intellectual property while avoiding the capital-intensive manufacturing operations. This approach should help maintain AMD's operating margin profile while still capturing the strategic benefits of vertically integrated solutions. The retention of key executives including ZT's founder and president ensures continuity and suggests a well-planned integration strategy for this capability-expanding acquisition.
Strategic transaction combines industry-leading systems and rack-level expertise with AMD GPU, CPU and networking silicon and open-source software to address the
SANTA CLARA, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- AMD (NASDAQ: AMD) today announced the completion of its acquisition of ZT Systems, a leading provider of AI and general-purpose compute infrastructure for the world’s largest hyperscale providers. The acquisition will enable a new class of end-to-end AI solutions based on the combination of AMD CPU, GPU and networking silicon, open-source AMD ROCm™ software and rack-scale systems capabilities. It will also accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud.
AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025. The world-class design teams will join the AMD Data Center Solutions business unit led by AMD Executive Vice President Forrest Norrod. AMD is actively engaged with multiple potential strategic partners to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business in 2025.
“With the rapid pace of innovation in AI, reducing the end-to-end design and deployment time of cluster-level data center AI systems will be a significant competitive advantage for our customers,” said Forrest Norrod, executive vice president and general manager, Data Center Solutions business unit at AMD. “Acquiring ZT Systems is a significant milestone in our AI strategy to deliver leadership training and inferencing solutions that are optimized for our customers’ unique environment, ready-to-deploy at scale, and based on our open ecosystem approach that combines open-source software, industry standard networking technologies and now ZT Systems’ leadership systems design and customer enablement expertise. We welcome Frank Zhang, Doug Huang and the talented ZT Systems team to AMD, where together we will offer customers both choice and speed to market, allowing them to invest in key areas where they choose to differentiate their AI offerings.”
Former ZT Systems Founder and CEO Frank Zhang joins AMD as senior vice president of ZT Manufacturing, reporting to Forrest Norrod, where he will help lead the divestiture of the manufacturing business. Former ZT Systems President Doug Huang joins AMD as senior vice president of Data Center Platform Engineering, also reporting to Forrest Norrod. In this role, he will lead design and customer enablement teams, working closely with the AMD Data Center Solutions business unit and AI Group to accelerate time-to-market for data center AI solutions.
About AMD
For more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies. Billions of people, leading Fortune 500 businesses and cutting-edge scientific research institutions around the world rely on AMD technology daily to improve how they live, work and play. AMD employees are focused on building leadership high-performance and adaptive products that push the boundaries of what is possible. For more information about how AMD is enabling today and inspiring tomorrow, visit the AMD (NASDAQ: AMD) website, blog, LinkedIn and X pages.
Cautionary Statement
The statements in this press release include forward-looking statements concerning Advanced Micro Devices, Inc. (AMD), ZT Systems, the proposed sale of ZT Systems’ manufacturing business and other matters. Forward-looking statements may discuss goals, intentions and expectations as to future plans, trends, events, results of operations or financial condition, or otherwise, based on current beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. Forward-looking statements speak only as of the date they are made or as of the dates indicated in the statements and should not be relied upon as predictions of future events, as there can be no assurance that the events or circumstances reflected in these statements will be achieved or will occur. Forward-looking statements can often, but not always, be identified by the use of forward-looking terminology including “believes,” “expects,” “may,” “will,” “should,” “seeks,” “intends,” “plans,” “pro forma,” “estimates,” “anticipates,” “designed,” or the negative of these words and phrases, other variations of these words and phrases or comparable terminology. The forward-looking statements in this press release relate to, among other things, data center AI accelerator opportunity, the integration of the businesses, sale of ZT Systems’ manufacturing business, and the expected benefits, accretion, synergies and growth to result therefrom. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated by the statements. These risks include, among other things: risks that the businesses will not be integrated successfully, the ability of AMD to sell ZT Systems’ manufacturing business on a timely basis or at all, or that AMD will not realize expected benefits, cost savings, accretion, synergies and/or growth, or that such benefits may take longer to realize than expected; the risk that disruptions from the transaction will harm business plans and operations; risks relating to unanticipated costs of integration and sale of ZT Systems’ manufacturing business; significant transaction, integration and separation costs, or difficulties and/or unknown or inestimable liabilities in connection with the transaction or sale of ZT Systems’ manufacturing business; restrictions during the pendency of the transaction that may impact the ability to pursue certain business opportunities or strategic transactions; the potential impact of the consummation of the transaction or sale of ZT Systems’ manufacturing business on AMD’s relationships with suppliers, customers, employees and regulators; and demand for AMD’s products. For a discussion of factors that could cause actual results to differ materially from those contemplated by forward-looking statements, see the section captioned “Risk Factors” in AMD’s Annual Report on Form 10-K for the fiscal year ended December 28, 2024, subsequent Quarterly Reports on Form 10-Q and other filings with the SEC. While the list of factors presented here is considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward looking statements. AMD does not assume, and hereby disclaims, any obligation to update forward-looking statements, except as may be required by law.
Contact:
Brandi Martina
AMD Communications
(512) 705-1720
Brandi.Martina@amd.com
Liz Stine
AMD Investor Relations
(720) 652-3965
Liz.Stine@amd.com
FAQ
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