- AMD is pursuing Nvidia with a substantial billion-dollar takeover bid.
Tech giant AMD is dishing out approximately $5 billion in cash and shares to get a hold of ZT Systems, a U.S.-based company renowned for advanced data center tech. The deal, appraised at around $4.9 billion ($4.4 billion EUR), also includes a potential payment of $400 million. After the news broke, AMD's shares saw an increase of roughly 2.5%.
As per AMD CEO Lisa Su, this acquisition will enable the company to deliver AI chip systems to customers' data centers more expeditiously. At the moment, Nvidia dominates the AI technology market quite significantly. AMD anticipates earning $4.5 billion from its new AI systems this year, while experts predict Nvidia's revenue for the current fiscal year to be around $100 billion. To keep pace, just like Nvidia, AMD aims to provide hardware and software solutions in a single bundle.
The announcement of AMD's acquisition of ZT Systems has sparked discussions about how it could potentially challenge Nvidia's dominance in the AI technology market, given that The Internet will play a crucial role in the dissemination of these advanced AI chip systems. AMD is planning to leverage ZT Systems' expertise in data center tech to strengthen its online presence and deliver its AI solutions more effectively over The Internet.
