AMD Buys ZT Systems for AI Boost

AMD (NASDAQ: AMD) has officially completed its acquisition of ZT Systems, a leading provider of AI and general-purpose compute infrastructure for the world’s top hyperscale cloud providers.

Strategic transaction combines industry-leading systems and rack-level expertise with AMD GPU, CPU and networking silicon and open-source software to address the $500 billion data center AI accelerator opportunity in 2028

This strategic acquisition marks a significant milestone in AMD’s ongoing efforts to deliver end-to-end AI infrastructure solutions, leveraging its full stack of CPU, GPU, and networking technologies, the open-source ROCm™ software platform, and now, ZT Systems’ expertise in rack-scale systems design.

By integrating ZT Systems, AMD aims to accelerate the design and deployment of AI infrastructure optimized for cloud environments, delivering faster time-to-market and enhanced scalability for customers. The transaction is expected to be accretive to AMD’s non-GAAP financial performance by the end of 2025.

ZT Systems’ talented engineering and design teams will join the AMD Data Center Solutions business unit, led by Executive Vice President Forrest Norrod. Their capabilities will strengthen AMD’s ability to offer highly customized and deployable AI and data center solutions tailored to the unique needs of hyperscale customers.

“With the fast pace of AI innovation, reducing deployment time for large-scale data center AI systems is a major competitive advantage,” said Forrest Norrod, Executive Vice President and General Manager of AMD’s Data Center Solutions business. “The acquisition of ZT Systems enhances our AI strategy, enabling us to deliver industry-leading training and inferencing solutions that are open, scalable, and optimized for customer-specific environments.”

As part of the transition:

Frank Zhang, Founder and former CEO of ZT Systems, joins AMD as Senior Vice President of ZT Manufacturing, reporting to Norrod. He will lead the divestiture of ZT Systems’ U.S.-based data center infrastructure manufacturing business, which AMD is currently exploring with strategic partners.

Doug Huang, former President of ZT Systems, joins AMD as Senior Vice President of Data Center Platform Engineering, also reporting to Norrod. Huang will oversee design and customer enablement teams, working closely with AMD’s Data Center and AI groups to accelerate deployment of AMD-powered AI infrastructure.

This acquisition strengthens AMD’s position in the competitive AI infrastructure market and underscores its commitment to providing customers with flexible, ready-to-scale solutions built on an open ecosystem of hardware and software.

Also Read: AMD's acquisition of ZT Systems boosts its data centre AI systems capabilities