AMD Completes Acquisition of ZT Systems, Expects Non-GAAP Accretion by 2025

By Bobby Samwell • Monday, March 31 10:03 • Permanent Link

AMD Completes Acquisition of ZT Systems, Expects Transaction to be Accretive on a Non-GAAP Basis by the End of 2025

AMD (NASDAQ: AMD) has announced the completion of its acquisition of ZT Systems, a leading provider of AI and general-purpose compute infrastructure for the world’s largest hyperscale providers. The acquisition is expected to enable a new class of end-to-end AI solutions based on the combination of AMD CPU, GPU, and networking silicon, open-source AMD ROCM™ software, and rack-scale systems capabilities. It will also accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud.

The press release highlights that AMD expects the transaction to be accretive on a non-GAAP basis by the end of 2025. The acquisition is aimed at reducing the end-to-end design and deployment time of cluster-level data center AI systems, providing a significant competitive advantage for customers.

Former ZT Systems founder and CEO Frank Zhang joins AMD as Senior Vice President of ZT manufacturing, reporting to AMD Executive Vice President Forrest Norrod. He will help lead the divestiture of the manufacturing business. Additionally, former ZT Systems President Doug Huang joins AMD as Senior Vice President of Data Center Platform Engineering, also reporting to Forrest Norrod. In this role, he will lead design and customer enablement teams, working closely with the AMD Data Center Solutions business unit and AI group to accelerate time-to-market for data center AI solutions.

This acquisition is seen as a significant milestone in AMD's AI strategy to deliver leadership training and inferencing solutions optimized for customers’ unique environments, ready-to-deploy at scale, and based on an open ecosystem approach combining open-source software, industry standard networking technologies, and ZT Systems’ leadership systems design and customer enablement expertise.

The press release further states that AMD is actively engaged with multiple potential strategic partners to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business in 2025. The world-class design teams from ZT Systems will join the AMD Data Center Solutions business unit led by AMD Executive Vice President Forrest Norrod. As a result of these announcements, the company's shares have moved -2.0% on the market, and are now trading at a price of $101.14. For the full picture, make sure to review Advanced Micro Devices's 8-K report.

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