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AMD signs $4.9 billion deal to challenge Nvidia’s AI infrastructure lead

NewsTech

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Visitors walk past the AMD booth at the 2024 Mobile World Congress

Enlarge (credit: CFOTO/Future Publishing via Getty Images)

AMD has agreed to buy artificial intelligence infrastructure group ZT Systems in a $4.9 billion cash and stock transaction, extending a run of AI investments by the chip company as it seeks to challenge market leader Nvidia.

The California-based group said the acquisition would help accelerate the adoption of its Instinct line of AI data center chips, which compete with Nvidia’s popular graphics processing units (GPUs).

ZT Systems, a private company founded three decades ago, builds custom computing infrastructure for the biggest AI “hyperscalers.” While the company does not disclose its customers, the hyperscalers include the likes of Microsoft, Meta, and Amazon.

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