By Michelle Chapman, Business Writer
SANTA CLARA, Calif. (AP) --AMD is buying server maker ZT Systems in a cash-and-stock deal worth $4.9 billion as the chipmaker strengthens its artificial intelligence capacity in its efforts to compete with Nvidia.
AMD plans to sell ZT Systems’ server manufacturing business after the deal closes, with mergers and acquisitions in tech and elsewhere getting a closer look by the Biden Administration.
ZT Systems, based in Secaucus, New Jersey, is a privately held company that has designed and rolled out data center and storage infrastructure systems to cloud companies for more than a decade.
The transaction includes a contingent payment of up to $400 million based on post-closing milestones.
AMD is looking to bulk up its AI capabilities. Over the past year, the company has invested more than $1 billion to expand its AI ecosystem and strengthen its AI software capabilities.
The moves are part of an effort to better compete with tech giant Nvidia, which has experienced nearly insatiable demand for its chips to power artificial intelligence applications.
Once AMD’s deal with ZT Systems closes, it will join the AMD Data Center Solutions Business Group. AMD said Monday that it will look for a buyer for its U.S.-based data center infrastructure manufacturing business.
The transaction, which was approved by AMD’s board, is expected to close in the first half of next year.
Shares of AMD, based in Santa Clara, Calif., rose more than 3% before the market opened.
Josh C. Kline joins Scripto as CEO
Josh C. Kline has been named the new CEO of Scripto, the innovative real-time, cloud-native platform designed for remote collaborative scriptwriting and production. Kline will steer Scripto into its next phase of growth. Plans call for Scripto to further transform collaboration throughout the writing and production stages, enabling creative teams to accelerate their workflow and enhance teamwork.
Emmyยฎ-winning programs such as โLate Night with Stephen Colbert,โ โLast Week Tonight with John Oliver,โ โThe Daily Show,โ and the Weekend Update on โSaturday Night Liveโ rely on Scriptoโs advanced workflow tools to allow show writers and production teams to work together seamlessly from any location.
โLate Nightโ host Colbert, co-founder of Scripto, said of Kline, โHis deep background in entertainment technology will help take our groundbreaking platform to new heights, and also ensure we are on the winning side when the AIs finally make their move, which we all know is coming. I canโt wait to see what weโll achieve together.
Kline brings a wealth of experience in technology and media. He previously served as head of media & entertainment at Box. Kline co-founded Sample Digital, where he developed Digital Dailiesโข, revolutionizing the review and approval process for film and TV production and earning him a Primetime Engineering Emmy Award. His entrepreneurial spirit continued with the launch of Secure Path Technology, a cloud-based content ID and metadata services company. Kline was chief strategy officer at Final Draft before joining Box as head of media & entertainment, and has consulted for major global clients including Microsoft, Avid, and Motion Picture Domain Registry.
โWhile more media is being... Read More