AMD, which is one of the leading chip manufacturing companies in the world, has managed to take a giant step in the race for AI acquiring the company ZT Systems in an operation with a $ 4.900 million value. Not only does it manage to improve its position in this war for AI between AMD and Nvidia, but it also shows the company's commitment to the advancement of this technology. Let's see why AMD buys ZT Systems and Why is this purchase so important in the race for AI?.
The AI race between AMD and Nvidia
Although AMD and Nvidia have been fighting for years in chip manufacturing, it has been with the exponential The rise of artificial intelligence is the trigger that has triggered the competitiveness between both companies that are proposed as a vanguard in this sector. And it is more than understandable understanding the future of this technology. You simply have to see that any company already uses this technology, such as Spotify o WhatsApp.
And is that AI-based technology is the cornerstone on which the future of markets is being built, any company has its sights set on process automation. And not only because AIs allow companies to reproduce routine processes automatically, saving costs, but AI is the essential tool for managing and analyzing large volumes of data.
As AI is proposed as the most important technology for many years to come, it is normal that the race for this technology offers large business acquisitions like the one we are seeing, but it has not been the only one. In 2020, AMD acquired Xilinx for $35.000 billion, something that opened the doors to key technology such as FPGAs, devices that can be reconfigured with great application and that are vital for the development of AI.
It is also important to bring this technology to the general public; in fact, it is not trivial that Nvidia is offering artificial intelligence services such as Chat with RTX. But, What does the ZT Systems company have? for AMD to have bet so hard on it? I tell you.
Why ZT Systems is important in the AI race
ZT Systems is known for its work in data centers and cloud infrastructure solutions, which means that This acquisition will enable AMD to enhance its ability to deliver end-to-end AI hardware solutions at scale..
And is that ZT Systems generates approximately $10.000 billion in revenue, with important clients such as AWS and Azure. This positions it as a cutting-edge company with a lot of potential in this sector. Even more so with AMD's infrastructure. So this acquisition will allow AMD to improve its ability to offer comprehensive hardware solutions.
Now, AMD will not keep the entire ZT Systems company after the acquisition. What AMD is most interested in about ZT Systems is its infrastructure design business. Being so, AMD can combine its GPUs and CPUs with the advanced infrastructure that ZT Systems already provides to large customers such as AWS and Azure.
Although the announcement of this acquisition was made on August 19, 2024, this transaction is not instantaneous. The transaction is expected to be completed during 2025.. Lisa Su, the CEO of AMD, has positively valued the purchase, indicating that it is the next step in her company's strategy in the race for AI.
So it's more than likely that we'll continue to see more acquisitions and advancements from AMD, as well as Nvidia. In fact This purchase intensifies competition in the field of AI, we will see what the future holds for this race.
From Tecnobits, we will be attentive to the next steps of these technological giants to keep you informed about how the AI market evolves.
I am a technology enthusiast who has turned his "geek" interests into a profession. I have spent more than 10 years of my life using cutting-edge technology and tinkering with all kinds of programs out of pure curiosity. Now I have specialized in computer technology and video games. This is because for more than 5 years I have been writing for various websites on technology and video games, creating articles that seek to give you the information you need in a language that is understandable to everyone.
If you have any questions, my knowledge ranges from everything related to the Windows operating system as well as Android for mobile phones. And my commitment is to you, I am always willing to spend a few minutes and help you resolve any questions you may have in this internet world.