Published , by Donovan Erskine
Published , by Donovan Erskine
NVIDIA’s surge in valuation has been the financial story of 2024 thanks to the AI boom, and rival AMD is looking to strengthen its own efforts. AMD has acquired ZT Systems, a company that specializes in cloud and telecom engineering, to bolster its AI efforts.
AMD’s acquisition of ZT Systems was reported today by Bloomberg. The $4.9 billion deal will see AMD take on total ownership of ZT Systems, though the company plans to sell its manufacturing wing to avoid competing with partners like Dell and HP.
“AI is the most transformational technology of the last 50 years and our No. 1 strategic priority,” said AMD CEO Lisa Su, who also confirmed AMD’s plans to retain 1,000 ZT Systems engineers. She went on to say that these engineers “understand the challenges of designing and managing high-performance and high-density systems at a massive scale.”
AMD stock responded positively to the news of the acquisition, Climbing as high as $153.89 on the day, representing a roughly 3.5% increase. AMD certainly has a lot of ground to make up for if it wants to properly compete with NVIDIA, and you can expect to read the latest business updates from both companies here on Shacknews.