Benzinga
  • 4 months ago
Advanced Micro Devices announced plans to acquire server maker ZT Systems for nearly $5 billion, aiming to strengthen its position in the AI hardware market and compete with rival Nvidia. The acquisition will primarily be funded with cash, supplemented by stock. ZT Systems' expertise will accelerate AMD's AI GPU development for cloud giants like Microsoft. AMD intends to sell its server manufacturing business after the deal closes, as it does not plan to compete with companies like Super Micro Computer. ZT Systems' CEO Frank Zhang will join AMD, and about 1,000 engineers will be retained.
Transcript
00:00It's Benzinga, and here's what's on the block.
00:02Advanced Micro Devices announced plans to acquire server maker ZT Systems for nearly
00:07$5 billion, aiming to strengthen its position in the AI hardware market and compete with
00:12rival NVIDIA.
00:13The acquisition will primarily be funded with cash, supplemented by stock.
00:17ZT Systems' expertise will accelerate AMD's AI GPU development for cloud giants like Microsoft.
00:23AMD intends to sell its server manufacturing business after the deal closes, as it does
00:28not plan to compete with companies like Super Micro Computer.
00:31ZT Systems' CEO Frank Zhang will join AMD, and about 1,000 engineers will be retained.
00:37For all things money, visit Benzinga.com.

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