AMD has agreed to acquire ZT Systems, a provider of AI infrastructure for hyperscale computing companies, for USD 4.9 billion in a cash and stock transaction. The deal includes a contingent payment of up to USD 400 million based on certain post-closing milestones, expected to close in the first half of 2025.

The acquisition will allow AMD to combine its Instinct GenAI accelerator, EPYC CPU, and networking product portfolios with ZT Systems' data center systems to scale its infrastructure solutions. Additionally, the company plans to sell its existing server manufacturing business once the acquisition closes.

ZT Systems designs and deploys data center AI compute and storage infrastructure at scale for major global cloud companies. The company is known for its expertise in AI training and inference infrastructure and generates annual revenue of USD 10 billion.

Analyst QuickTake: AMD has steadily been acquiring companies as it looks to take on NVIDIA's market share in the GenAI training and inference space. Previous activities include the signing of the company’s definitive agreement ( July 2024 ) to acquire Silo AI for USD 665 million and its acquisition of Nod.ai ( October 2023 ).