Nvidia competition pushes AMD to acquire $5 billion Al Khaleej Newspaper

AMD said Monday it plans to acquire server maker ZT Systems for $4.9 billion, as the company seeks to expand its portfolio of chips and artificial intelligence tools and compete with Nvidia .
AMD plans to pay 75% of ZT’s acquisition value in cash and the rest in the form of shares. The company had $5.34 billion in cash and short-term investments as of the second quarter.
The computing requirements of artificial intelligence have required technology companies to put together thousands of chips in clusters to achieve the necessary level of data processing power. Assembling large numbers of chips together means that installing whole server systems is increasingly important, which is why AMD got ZT.
AMD shares rose about 3% in premarket trading. (Reuters)