Asia Tech Wire (Aug 20) -- AMD announced Monday that it has agreed to acquire server maker ZT Systems in a cash-plus-stock deal valued at $4.9 billion.

New Jersey-based ZT Systems will become part of AMD's Data Center Solutions business group, according to a statement.

AMD will retain the company's design and customer teams and consider selling the manufacturing division.

ZT Systems provides AI infrastructure to the world's largest hyperscale computing companies, and Nvidia and OpenAI have been its customers.

The deal marks the next major step in AMD's AI strategy to provide leading-edge training, inference solutions based across chips, software and systems.