AMD Acquires ZT Systems for $4.9 Billion to Challenge Nvidia in AI

The strategic acquisition aims to bolster AMD's AI infrastructure capabilities and expand its data center market presence.

AMD will integrate ZT Systems into its Data Center Solutions Business Group.
The deal includes a $400 million contingent payment based on post-closing milestones.
AMD plans to sell ZT's manufacturing business to focus on design and customer teams.
The acquisition is expected to close in the first half of 2025, pending regulatory approval.
AMD's shares rose following the announcement, reflecting investor confidence.