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    Home » AMD buying server maker ZT Systems for $4.9 billion as chipmakers strengthen AI capabilities

    AMD buying server maker ZT Systems for $4.9 billion as chipmakers strengthen AI capabilities

    By SHOOTMonday, August 19, 2024No Comments485 Views
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    An Advance Micro Devices (AMD) logo is shown on a computer at Best Buy in Mountain View, Calif., Oct. 14, 2009. (AP Photo/Paul Sakuma, File)

    By Michelle Chapman, Business Writer

    SANTA CLARA, Calif. (AP) --

    AMD is buying server maker ZT Systems in a cash-and-stock deal worth $4.9 billion as the chipmaker strengthens its artificial intelligence capacity in its efforts to compete with Nvidia.

    AMD plans to sell ZT Systems’ server manufacturing business after the deal closes, with mergers and acquisitions in tech and elsewhere getting a closer look by the Biden Administration.

    ZT Systems, based in Secaucus, New Jersey, is a privately held company that has designed and rolled out data center and storage infrastructure systems to cloud companies for more than a decade.

    The transaction includes a contingent payment of up to $400 million based on post-closing milestones.

    AMD is looking to bulk up its AI capabilities. Over the past year, the company has invested more than $1 billion to expand its AI ecosystem and strengthen its AI software capabilities.

    The moves are part of an effort to better compete with tech giant Nvidia, which has experienced nearly insatiable demand for its chips to power artificial intelligence applications.

    Once AMD’s deal with ZT Systems closes, it will join the AMD Data Center Solutions Business Group. AMD said Monday that it will look for a buyer for its U.S.-based data center infrastructure manufacturing business.

    The transaction, which was approved by AMD’s board, is expected to close in the first half of next year.

    Shares of AMD, based in Santa Clara, Calif., rose more than 3% before the market opened.

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    Tags:AMDartificial intelligenceNVIDIAZT Systems



    In a divided America, the left and right unite to oppose artificial intelligence data centers

    Wednesday, August 26, 2026
    Protesters gather outside the New Mexico Environment Department to voice opposition to the Project Jupiter data center during a demonstration in Santa Fe, N.M., Friday, Aug. 21, 2026. (AP Photo/Susan Montoya Bryan)

    In rural eastern Nebraska, a technology revolution could rise from fields of corn and soybean in the form of new data centers to power the artificial intelligence boom. But just like around many parts of the country, opposition has been building in ways that defy typical partisan boundaries. Conservative farmers and the state Sierra Club chapter recently found common cause against labor leaders as they filled the firehouse in Murdock — population around 275 — to share concerns about data center development moving too quickly. The scene exemplified an unlikely coalition that worries about dwindling farmland, declining water supplies and rising electricity bills — not to mention how massive corporations could reshape small town America into nodes in a national network of computing warehouses. The debate around data center projects is one of the rare modern issues to cut across party lines, demographics and geography — from Republican-dominated Nebraska, Texas and Wyoming to swing-state Pennsylvania to Democratic-leaning New Mexico. Supporters of data centers, including Republican President Donald Trump and some union leaders who usually back Democrats, praise a potential jobs and economic bonanza, while helping the U.S. thwart China in the geopolitical race for technological supremacy. But hostility toward developments coming at breakneck speed has surged ahead of November's midterm elections, and forced national, state and local elected officials to adapt to a shifting political landscape. Judy Stroy, a fifth-generation Nebraska farmer whose late husband grew corn and soybeans and whose son still does, worried that with "the amount of ground that's getting gobbled up every year, our food source is in trouble." "That should scare everyone,"... Read More

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