AMD has recently made a significant move by acquiring ZT Systems, a company specializing in designing server systems for large cloud service providers, for a whopping $4.9 billion.
While ZT Systems may not be a household name, the company has a solid track record, with a 29-year history dating back to its inception in 1994 as a PC business before branching out into server solutions in 2004. Currently, all of ZT Systems’ business is B2B, focusing on providing server systems for cloud and telecom giants, with the ability to manufacture its own servers and having factories in multiple countries.
Lisa Su, the CEO of AMD, emphasized that this acquisition will bolster AMD’s presence in the cloud and enterprise sector, with ZT Systems’ server solutions complementing AMD’s existing data center products like Epyc CPUs, AI accelerators, and network solutions.
An intriguing aspect of this deal is that ZT Systems has close ties with AMD’s competitors Intel and NVIDIA. With their recent unveiling of server platforms utilizing the NVIDIA GB200 Grace Blackwell Superchip, it remains to be seen how ZT Systems’ server development roadmap will evolve post-acquisition.
TLDR: AMD acquires ZT Systems to enhance its presence in the cloud and enterprise market, leveraging ZT’s expertise in server solutions to complement AMD’s existing product lineup and potentially compete with industry giants like Intel and NVIDIA.
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