Advanced Micro Devices (AMD) has secured approval from the European Commission (EC) for its $4.9 billion acquisition of hyperscale server solutions provider ZT Group Int’l (doing business as ZT Systems) under the EU Merger Regulation. The clearance follows a regulatory probe launched in February 2025, which examined the transaction’s impact on competition in field-programmable gate array (FPGA) semiconductors and data centre servers.
The European Commission determined that the deal would not disrupt market competition, citing the absence of direct business overlaps between AMD and ZT Systems. It also noted the availability of multiple alternative suppliers and concluded that the acquisition would not enable the combined entity to implement foreclosure strategies.
The European regulator’s decision follows approval from Singapore’s Competition and Consumer Commission, which cleared the deal in January 2025, raising no objections to the deal. While these approvals advance the acquisition process, AMD is still awaiting regulatory clearance in other jurisdictions. The deal is expected to close in the first half of this year, subject to other regulatory approvals and conditions.
To facilitate regulatory approvals and streamline operations, AMD has outlined plans to divest ZT Systems’ server manufacturing business after the acquisition closes. The move is intended to address potential market competition concerns while allowing AMD to focus on AI infrastructure and cloud computing solutions.
ZT Systems integration and expansion of AMD’s AI capabilities
AMD’s acquisition of ZT Systems is expected to enhance its AI and data centre business. At the time of the announcement, AMD chair and CEO Lisa Su stated that ZT Systems’ expertise in systems design and rack-scale solutions would support AMD’s expansion in AI-driven data centre infrastructure. She noted that the acquisition aligns with AMD’s ongoing investments in AI hardware and software and is expected to enable the company to scale its AI solutions more efficiently.
Su also explained that integrating AMD’s Instinct AI accelerator, EPYC CPU, and networking technologies with ZT Systems’ data centre infrastructure would create an expanded AI ecosystem. She stated that this combination would allow AMD to develop AI infrastructure in collaboration with original equipment manufacturers (OEMs) and original design manufacturers (ODMs).
ZT Systems, headquartered in Secaucus, New Jersey, has been a key provider of AI and cloud computing solutions for large hyperscale computing companies. Since more than 15 years, the company has been designing and deploying AI compute and storage infrastructure at scale.
The deal with ZT Systems follows AMD’s $665m acquisition of Silo AI, which closed in August 2024. AMD acquired the Finnish AI software company with the aim of strengthening its AI development efforts and enhancing its positioning against Nvidia.
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