The chipmaker AMD introduced on Monday plans to accumulate server maker ZT Systems in a cash-and-stock deal price $4.9 billion as the corporate strengthens its synthetic intelligence capability in its efforts to compete with Nvidia.
AMD plans to pay for 75% of the ZT Systems acquisition with money and the rest in inventory. The firm had $5.34 billion in money and short-term investments as of the second quarter.
The computing necessities for AI have dictated that tech corporations string collectively hundreds of chips in clusters to attain the mandatory quantity of data-crunching horsepower. Stringing collectively the huge numbers of chips has meant the make-up of complete server programs has grow to be more and more necessary, which is why AMD is buying ZT Systems.
“AI systems are our No. 1 strategic priority,” AMD CEO Lisa Su stated in an interview with Reuters.
The addition of ZT Systems engineers will permit AMD to extra shortly take a look at and roll out its newest AI graphics processing models (GPUs) on the scale of cloud computing giants resembling Microsoft require, Su stated.
“The main way (ZT Systems) is additive to the company is we sell more GPUs,” Su stated.
AMD plans to interrupt off its server manufacturing business and promote it as soon as the deal closes, because it has no plans to compete with corporations resembling Super Micro Computer, Su stated.
AMD has not but held talks with potential consumers.
ZT Systems Chief Executive Frank Zhang will be a part of AMD and report back to AMD’s information middle chief, Forrest Norrod.
The intently held ZT Systems has roughly 2,500 staff of which AMD plans to retain about 1,000 engineers. Currently, ZT Systems generates annual income of roughly $10 billion, Su stated.
Executives anticipate the deal to shut within the first half of 2025 and anticipate a further 12 to 18 months to promote the manufacturing business.
Nvidia CEO Jensen Huang stated on the firm’s developer convention in March that the one-time chip designer now creates and sells complete information facilities, or the person parts wanted to construct one. This yr analysts anticipate the corporate to generate $105.9 billion from its information middle phase, which incorporates chips and different AI {hardware}.
Su stated final month the corporate expects to gather roughly $4.5 billion price of AI chip income this yr. The firm’s clients embrace Microsoft and Meta Platforms.
AMD expects ZT Systems to contribute to the corporate’s adjusted monetary efficiency by the tip of 2025.
Source: www.dailysabah.com