For 4.9 billion dollars
AMD takes over server manufacturer ZT Systems
AMD continues to focus on acquisitions in the battle for market share in highly profitable special processors for artificial intelligence. The US chip manufacturer announced the takeover of server manufacturer ZT Systems for 4.9 billion dollars on Monday. The purchase price will be paid 75 percent in cash, with the remainder paid in shares.
"AI systems are a top strategic priority for us," said AMD CEO Lisa Su in an interview with Reuters. Once the takeover is complete, the server manufacturing business will be sold. AMD does not intend to compete with companies such as Super Micro Computer. However, the company has not yet held talks with potential buyers.
"The main advantage of ZT Systems for our company is that we sell more GPUs," explained Su. This would allow AMD to close the gap with global market leader Nvidia in highly profitable AI graphics processors (GPUs). To date, Nvidia has dominated around 80 percent of the global market for AI specialty processors.
AMD has acquired several AI specialists in recent months in order to strengthen its software division. Most recently, the chip manufacturer acquired the Finnish AI developer Silo AI for around 665 million dollars in July. According to AMD, it expects ZT Systems to contribute to the company's adjusted balance sheet by the end of 2025.
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