ZT Systems, based in New Jersey, has been privately held since its inception in 1994 and has worked closely with major chipmakers like Nvidia and Intel. Its CEO, Frank Zhang, will lead AMD’s manufacturing business, while ZT president Doug Huang will lead the design and customer enablement teams. The deal is expected to close in the first half of 2025 and will see ZT Systems become part of AMD’s Data Center Solutions Business Group.
Key takeaways:
- AMD is acquiring ZT Systems, a provider of compute design and infrastructure for AI, cloud and general purpose computing, for $4.9 billion. The deal includes a contingent payment of up to $400 million if certain performance metrics are met.
- ZT Systems has been privately held since its inception in 1994 and works closely with major chipmakers such as Nvidia and Intel. The acquisition will help AMD to enhance its AI systems design expertise, which could boost its chip sales.
- AMD plans to incorporate ZT Systems' computing infrastructure design business and sell its data center infrastructure manufacturing business to a strategic partner. ZT Systems will become part of AMD's Data Center Solutions Business Group.
- The deal is expected to close in the first half of 2025. Post-acquisition, ZT Systems' CEO Frank Zhang will lead AMD’s manufacturing business, and ZT president Doug Huang will lead the design and customer enablement teams.