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AMD advances AI play with $4.9B takeover of ZT Systems
1 Min Read
Andreas Prott / Alamy Stock Photo
Semiconductor company Advanced Micro Devices (AMD) plans to acquire server manufacturer ZT Systems for $4.9 billion – a move that could boost its challenge to competitor Nvidia in the AI space, according to The Wall Street Journal (WSJ). ZT Systems also develops data center equipment to support cloud and AI.
After Nvidia, “AMD is the second-biggest provider of the graphics processors that have become so vital to developing AI software,” reported Bloomberg. AMD has invested over $1 billion in the last 12 months to further develop its AI technology.
AI is AMD’s “no. 1 strategic priority,” said the company’s CEO Lisa Su in a call with investors on Monday. Last month, AMD announced plans to purchase AI lab Silo AI for $665 million.
The acquisition of ZT Systems could also boost AMD’s rivalry with Intel.
“For some time, [Intel] has been losing market share to AMD, a rival that bases its chip designs on the same x86 architecture used by Intel,” reported Light Reading’s Iain Morris. Intel announced a workforce reduction of 15% earlier this month, which could amount to a loss of over 18,000 jobs.
To read the complete article, visit Light Reading.
