The European Union’s antitrust regulators are set to make a decision by March 12 on U.S. chipmaker AMD’s $4.9 billion acquisition of server manufacturer ZT Systems. AMD announced the acquisition in August 2024, which aims to strengthen its portfolio of artificial intelligence (AI) chips and hardware to better compete with rivals such as Nvidia.
ZT Systems specializes in AI infrastructure, serving some of the world’s largest hyperscale computing companies, including Microsoft and Meta Platforms. The EU’s preliminary review could result in the deal being approved, either with or without conditions. However, if the European Commission has significant concerns, it could initiate a four-month investigation into the deal.
This acquisition is part of AMD’s strategy to expand its presence in the AI sector, where it faces intense competition from Nvidia, which currently dominates the AI chip market.
