In recent years, AMD has made huge investments in AI.

AMD will acquire server manufacturer ZT Systems for $4.9 billion in cash and stock, aiming to increase data center technology, according to the company's official website. After the acquisition, ZT Systems will become part of AMD's data center solutions business group. AMD will retain ZT's design and customer teams, including about 1,000 engineers, and plans to sell ZT's manufacturing division after the transaction is completed.

According to information, ZT Systems is a New Jersey-based company that focuses on manufacturing servers for large data centers. The company has more than 15 years of experience in designing and deploying data center AI computing and storage infrastructure for the world's largest cloud companies. Its design, integration, manufacturing and deployment capabilities make it one of the leading providers of AI training and reasoning infrastructure.

It is worth noting that Nvidia has always been a customer of ZT Systems, which has provided AI services for GB200 GPU products, and the two companies are in an upstream and downstream relationship. Some analysts pointed out that since AMD acquired ZT Systems for $4.9 billion, given the competitive relationship between Nvidia and AMD, this means that after the acquisition, ZT Systems' cooperation with Nvidia may stop.

AMD CEO Lisa Su said that the acquisition will help the company's largest customers deploy AMD's AI infrastructure faster, and ZT's engineering team has rich experience in designing and managing large-scale high-performance systems.

It is worth mentioning that AMD has been investing heavily in AI in recent years. In the past 12 months, in addition to increasing R&D activities, AMD has invested more than $1 billion to expand the AMD AI ecosystem and enhance the company's AI software capabilities.

In July this year, AMD announced that it would acquire Silo AI, Europe's largest private AI laboratory, in an all-cash transaction with a transaction value of approximately $665 million, and has signed a final agreement. AMD acquires Silo AI to expand enterprise AI solutions globally.

Last October, AMD announced the acquisition of open source artificial intelligence software company Nod.ai to expand the company's open artificial intelligence software capabilities.

Data shows that AMD's second quarter revenue in 2024 reached $5.8 billion, with a gross profit margin of 49%, operating income of $269 million, net income of $265 million, and diluted earnings per share of $0.16. Based on non-GAAP standards, the gross profit margin was 53%, operating income was $1.3 billion, net income was $1.1 billion, and diluted earnings per share were $0.69.

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