AMD Intensifies Pressure on AI Leader NVIDIA with Billion-Dollar Acquisition

Chipmaker AMD is ramping up its pursuit of AI industry leader NVIDIA by investing approximately five billion dollars in a strategic acquisition.

AMD has announced the takeover of U.S.-based company ZT Systems, a firm specializing in technology for data centers. The purchase price will be paid in a combination of cash and stock, totaling around 4.9 billion dollars, which includes a performance-based payment of 400 million dollars.

Investors responded enthusiastically to the news of the acquisition. On Monday, following the announcement, AMD’s stock surged by 4.52%, closing at 155.28 US dollars on the NASDAQ technology exchange.

AMD CEO Lisa Su stated that acquiring ZT Systems will enable the company to deliver AI chip systems to customers’ data centers more rapidly. Currently, NVIDIA holds a significant lead in technology for artificial intelligence applications. AMD has projected revenues of over 4.5 billion dollars this year from its new AI systems, while analysts estimate that NVIDIA could generate around 100 billion dollars in the current fiscal year. To close this gap, AMD plans to offer integrated hardware and software solutions, mirroring NVIDIA’s successful strategy.

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