In a significant move to enhance its presence in the data centre market, AMD has successfully acquired ZT Systems for approximately $4.9 billion. This acquisition comes as part of AMD’s strategic efforts to compete more aggressively against companies like Nvidia, which has established itself as a leader in systems integration for large data centres.

The announcement of the acquisition was made public alongside confirmation that AMD closed the deal on March 31, 2025. This deal supports AMD’s existing data centre initiatives and positions them well to exploit the growing opportunities within the AI sector.

Last fiscal year, AMD’s data centre division generated $12.6 billion in revenue, making it a crucial part of the company’s overall financial health. The growth of AI technology presents an excellent opportunity for AMD to leverage its newly acquired capabilities in providing complete service systems to notable clients, including tech giants such as Apple and Facebook.

AMD is optimistic about its prospects stemming from this acquisition, especially as competition ramps up in the AI-driven data centre market. This move mirrors Nvidia’s significant growth strategy, as AMD aims to broaden its operational capacity and enhance profitability in this area.