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AMD to Boost Grit in AI Data Center With New Buyout

AMD forecasted last year that the data center AI accelerator market will grow to US$500 billion by 2028. For that reason, the company has been pushing through its commitment to deliver open innovation at scale through its expanded silicon, software, network, and cluster-level solutions.

To make this possible, AMD has announced to have completed the acquisition of ZT Systems, a leading provider of AI and general-purpose compute infrastructure for the world’s largest hyperscale providers.

Expanding Footprint

Industry players know that AMD is popular in the fields of graphics processing units (GPUs), central processing units (CPUs), and even in networking silicon. Thus, the acquisition of ZT Systems will expand its footprint even further. This will enable AMD to craft a formidable platform that can cater to the increasingly complex demands of AI workloads.

The acquisition will 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 world-class design teams will join the AMD Data Center Solutions business unit led by AMD Executive Vice President Forrest Norrod. AMD has been actively engaging with multiple potential strategic partners to acquire ZT Systems’ industry-leading U.S.-based data center infrastructure manufacturing business in 2025.

Offers Significant Advantage

“With the rapid pace of innovation in AI, reducing the end-to-end design and deployment time of cluster-level data center AI systems will be a significant competitive advantage for our customers,” said Norrod.

In addition, Norrod said the acquisition will offer significant milestone in its AI strategy to deliver leadership training and inferencing solutions optimized for customers’ unique environment, ready-to-deploy at scale.

Meanwhile, Former ZT Systems Founder and CEO Frank Zhang joins AMD as senior vice president of ZT Manufacturing. Specifically, he will help lead the divestiture of the manufacturing business. Former ZT Systems President Doug Huang joins AMD as senior vice president of Data Center Platform Engineering. 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.

09 April 2025