AMD, the chipmaker sizzling on the heels of Nvidia, at this time introduced a giant acquisition to spice up its place as an “ecosystem” associate for corporations constructing large AI companies: it’s buying ZT Methods, which supplies compute design and infrastructure for AI, cloud and normal objective computing, for $4.9 billion. The deal is a mixture of money and inventory and features a contingent cost of as much as $400 million if sure efficiency metrics are met.
The plan is to include ZT Methods’ computing infrastructure design enterprise. AMD stated it is going to look to promote ZT Methods’ knowledge heart infrastructure manufacturing enterprise to “a strategic associate.”
Based mostly in New Jersey, ZT Methods has been privately-held because it was based in 1994, and has disclosed just one exterior funding spherical — it raised $850 million in debt in 2023, in accordance with PitchBook. It really works intently with large chipmakers reminiscent of Nvidia and Intel throughout areas reminiscent of server options for storage, GPU/accelerators, high-performance computing, 5G, and edge computing.
AMD stated the deal will give it a deeper bench of experience in AI methods design involving not simply silicon, however software program and methods — that would assist AMD promote extra of its chips (and methods powered by its chips) to prospects. AMD stated it has already invested about $1 billion in constructing its broader ecosystem.
There’s a want for that enhanced method: As AI methods develop extra advanced, one main precedence for large tech corporations constructing and working them might be to extend the effectivity of their methods for probably the most compute-heavy elements reminiscent of AI mannequin coaching and inferencing.
“Our acquisition of ZT Methods is the subsequent main step in our long-term AI technique to ship management coaching and inferencing options that may be quickly deployed at scale throughout cloud and enterprise prospects,” AMD chair and CEO, Dr. Lisa Su, stated in a press release. “ZT provides world-class methods design and rack-scale options experience that can considerably strengthen our knowledge heart AI methods and buyer enablement capabilities. This acquisition additionally builds on the investments we now have made to speed up our AI {hardware} and software program roadmaps. Combining our high-performance Intuition AI accelerator, EPYC CPU, and networking product portfolios with ZT Methods’ industry-leading knowledge heart methods experience will allow AMD to ship end-to-end knowledge heart AI infrastructure at scale with our ecosystem of OEM and ODM companions.”
ZT Methods doesn’t disclose the names of its purchasers, but it surely seems to have elevated its profile lately for offering specialist help in a few of the thorniest and costliest elements of AI computing structure design.
Its CEO Frank Zhang will lead AMD’s manufacturing enterprise. ZT Methods will grow to be part of AMD’s Knowledge Heart Options Enterprise Group.
“We’re excited to affix AMD and collectively play a fair bigger function designing the AI infrastructure that’s defining the way forward for computing,” stated Zhang, CEO of ZT Methods, in a press release. “For nearly 30 years we now have developed our enterprise to grow to be a number one supplier of essential computing and storage infrastructure for the world’s largest cloud corporations. AMD shares our imaginative and prescient for the vital function our expertise and our folks play designing and constructing the computing infrastructure powering the biggest knowledge facilities on this planet.”
ZT President Doug Huang will lead the design and buyer enablement groups, and each will report back to AMD govt vice chairman and normal supervisor, Forrest Norrod.
The deal is anticipated to shut within the first half of 2025.