AMD completes acquisition of ZT Systems

Strategic transaction combines industry-leading systems and rack-level expertise with AMD Graphics Processing Unit (GPU), Central Processing Unit (CPU) and networking silicon and open-source software to address the $500 billion data center Artificial Intelligence (AI) accelerator opportunity in 2028.

AMD has announced the completion of its acquisition of ZT Systems, a provider of AI and general-purpose compute infrastructure for hyperscale providers. This acquisition will facilitate the development of end-to-end AI solutions integrating AMD CPU, GPU, and networking silicon, and will make use of AMD ROCm software and rack-scale systems capabilities. It aims to enhance the deployment of AMD-powered AI infrastructure optimized for cloud environments.

AMD expects the transaction to contribute positively to its financial performance on a non-GAAP basis by the end of 2025. The design teams from ZT Systems will integrate into AMD's Data Center Solutions business unit, overseen by Executive Vice President Forrest Norrod. AMD is also pursuing potential strategic partners for the acquisition of ZT Systems’ 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 of the Data Center Solutions business unit. “Acquiring ZT Systems is a milestone in our AI strategy to deliver training and inferencing solutions optimized for our customers’ unique environments.” Norrod added that this strategic move is designed to offer customers the choice and speed necessary to enhance their AI solutions.

Former ZT Systems Founder and CEO Frank Zhang assumes the role of senior vice president of ZT Manufacturing at AMD, focusing on the divestiture of the manufacturing business. Doug Huang, the former president of ZT Systems, is appointed as senior vice president of Data Center Platform Engineering, a position in which he will coordinate the design and customer enablement teams to expedite market readiness for AI solutions.