Advanced Micro Devices (AMD) has announced the completion of its acquisition of ZT Systems for $4.9 billion. This purchase aims to bolster AMD’s position in cloud computing and artificial intelligence, allowing it to compete with Nvidia’s products in the data center sector.
This is reported by Finway
AMD’s Strategy for Integration and Open Ecosystem
AMD CEO Lisa Su emphasized that the complexity of system integration is increasing, so the company must offer not only chips but also comprehensive solutions. AMD is focusing on an open ecosystem, which sets it apart from its competitors’ strategies.
“The idea is that we want to have all the capabilities and then create a sufficiently open ecosystem so that our customers can choose what they need in their environments,” said the head of AMD.
Transition of Engineers and the Future of ZT Systems
ZT Systems, with an annual revenue of over $10 billion, specializes in developing equipment for server farms. As part of the deal, about 1,000 of the company’s engineers will transition to AMD’s Data Center Solutions division. It is noted that ZT Systems’ manufacturing division will be sold to third-party investors.
According to analysts, the market for AI-based computing is large enough for competition between AMD and Nvidia. Lisa Su highlighted that the demand for computing power significantly exceeds last year’s figures, as indicated by statements from Nvidia’s CEO Jensen Huang.
The acquisition of ZT Systems is part of a broader strategy by AMD, which includes previous acquisitions of Xilinx and Pensando to develop programmable chips and networking solutions in data centers. This indicates AMD’s intention to create comprehensive solutions for AI-based computing, as confirmed by experts.