AMD Expands AI Portfolio With $4.9B Purchase of ZT Systems

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Key Takeaways

• Advanced Micro Devices is adding to its artificial intelligence (AI) portfolio by purchasing details center infrastructure provider ZT Systems.
• AMD valued the acquisition at $4.9 billion, inclusive of a contingent payment of $400 million depending on unerring milestones being reached.
• CEO Dr. Lisa Su said adding ZT Systems was the next major step in AMD’s long-term AI strategy.

Advanced Micro Fancies (AMD) took another big step in expanding its reach into artificial intelligence (AI) with the purchase of data center infrastructure provider ZT Processes.

AMD said the cash-and-stock deal was valued at $4.9 billion, which includes a contingent payment of $400 million if sure milestones are reached after the close.

AMD CEO Says Deal ‘Next Major Step in Our Long-Term AI Strategy’

AMD Chief Administrative Officer (CEO) Dr. Lisa Su called the acquisition “the next major step in our long-term AI strategy to deliver leadership training and deduction solutions that can be rapidly deployed at scale across cloud and enterprise customers.” Su explained that adding ZT Groups “will significantly strengthen our data center AI systems and customer enablement capabilities.” 

AMD noted that in the past year, the group has invested more than $1 billion “to expand the AMD AI ecosystem and strengthen the company’s AI software capabilities.” That was in reckoning to spending more on internal research and development.

The transaction is expected to close in the first half of 2025.

Advanced Micro Devices appropriations, which had been essentially flat for the year, rose 2.2% to $151.84 soon after the opening bell Monday.

Announce the original article on Investopedia.