AMD to acquire ZT Systems for $4.9 billion, boosting data center efforts

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AMD to acquire ZT Systems for $4.9 billion, boosting data center efforts

As a seasoned gamer with decades of experience under my belt, I can’t help but feel a thrill at the latest tech acquisitions shaking up the industry. The news of AMD’s $4.9 billion acquisition of ZT Systems has sent ripples through the gaming community, and for good reason! AI is undeniably the driving force behind many modern games, and AMD seems to be doubling down on its commitment to this technology.

In simpler terms, NVIDIA’s significant increase in value was one of the most significant financial tales in 2024, primarily due to the growth of artificial intelligence (AI). In response, AMD is aiming to enhance its own AI endeavors by purchasing ZT Systems, a company known for its expertise in cloud and telecommunications engineering.

Today, Bloomberg announced that AMD is set to acquire ZT Systems for a sum of $4.9 billion. As part of the acquisition, AMD will fully own ZT Systems; however, they plan to divest their manufacturing division to prevent competition with existing partners such as Dell and HP.

AMD to acquire ZT Systems for $4.9 billion, boosting data center efforts

“Lisa Su, AMD’s CEO, stated that AI is the most significant technology innovation in the past 50 years and it’s their top strategic focus. She also disclosed plans to retain around 1,000 engineers from ZT Systems because they are skilled at handling the difficulties associated with designing and managing high-performance and high-density systems on a large scale.”

The AMD shares showed an upward trend following the acquisition news, peaking at $153.89, which is approximately a 3.5% rise. AMD still has some distance to cover in order to rival NVIDIA effectively. Keep an eye out for the most recent business developments from both companies right here on Shacknews.

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2024-08-19 21:57