Chipmaker Advanced Micro Devices (AMD) made another big move in its push for a bigger chunk of the artificial intelligence (AI) market. The company announced on Monday that it had acquired server maker ZT Systems in a $4.9 billion deal.
ZT Systems, which is headquartered in Secaucus, New Jersey, specializes in designing and deploying data center AI compute and storage infrastructure.
The company’s expertise in providing software solutions for large-scale data centers is expected to boost AMD’s ability to expand its AI footprint and keep up with rivals like Nvidia. Back in July, AMD also acquired private AI lab Silo AI in a $665 million deal.
AMD will complete the transaction for ZT Systems using cash and stock with the deal, including a $400 million contingent payment if certain post-closing incentives are met. It plans to retain ZT Systems’ design and customer teams while exploring the sale of the manufacturing division.
“Our acquisition of ZT Systems is the next major step in our long-term AI strategy to deliver leadership training and inferencing solutions that can be rapidly deployed at scale across cloud and enterprise customers,” said AMD’s CEO Lisa Su in a statement. “ZT adds world-class systems design and rack-scale solutions expertise that will significantly strengthen our data center AI systems and customer enablement capabilities. This acquisition also builds on the investments we have made to accelerate our AI hardware and software roadmaps. “
The news about ZT Systems acquisitions helped AMD’s stock to take a 3.4% jump at one point on Monday. The company’s stock is currently 10% up year-to-date.