AMD is putting almost five billion dollars on the table for ZT Systems in order to significantly expand its AI infrastructure and prepare itself for competition with Nvidia.

AMD announces in a press release the acquisition of ZT Systems, a specialist in AI infrastructure for large hyperscalers. This strategic acquisition will enable AMD to deliver optimized rack-scale solutions faster, with the goal of being more competitive in the AI ​​industry. AMD is putting $4.9 billion on the table.

ZT Systems is a New Jersey-based company with more than 15 years of experience in developing and implementing AI compute and storage infrastructure for large cloud companies. ZT Systems’ expertise in system design and integration complements AMD’s existing chip and software offerings. With ZT Systems, AMD is further expanding its AI infrastructure.

Upon completion of the transaction, which is expected to occur in the first half of 2025, ZT Systems will become part of AMD’s data center business, with ZT Systems’ CEO and Chairman of the Board of Directors being assigned leadership roles within the division.

Intensify competition

In addition to this acquisition, AMD has invested more than $1 billion over the past year to expand its AI ecosystem and strengthen its capabilities. AMD has no intention of resting on its laurels anytime soon.

The chipmaker wants to position itself as a challenger to Nvidia in the AI ​​industry. The other major challenger is Intel, but things have not been going smoothly there recently. In addition, Huawei and Japan’s Softbank also have big ambitions.