It will not escape your notice that in recent years, Nvidia has been converting a chip designer ‘just’ a complete system into a complete system integration company. If you want a large -scale data center or host of AI servers, NVIDIA will design and create the whole thing for you. And now it seems that AMD is joining the action by finalizing a nearly five billion dollar deal ZT SystemA company that designes and creates – yes, you have guessed it – data, clouds, and AI centers.
AMD announces closure of the purchase agreement today (via) Global Wire), First made it Publicly famous intentions in August last year. The acquisition, which costs 9 4.9 billion cash and stock, will definitely make a slight dent in AMD’s financial matters, but there is no doubt that if the AI ​​market continues to increase as expected, it will cost each percent.
In the financial year 2024, the AMD pulled up with its data center division .6 to 12.6 billion revenue, which accounts for about 50 % of its full income this year. It is also the second most profitable sector of AMD, which is about 27 % of the operating margin – more than twice as much of its client and gaming sectors.
The NVIDIA Data Center Division is a credible money -maker machine, which has earned approximately $ 50 billion in revenue last year, so it is not difficult to see why the AMD determined about the termination of the ZT system. The last mega purchase she had done Zelanx Billion for 35 billionTo strengthen its embedded sector, so this is a sharp change than it.
Even though it is paid, this is another question, as the NVIDIA AI server is currently dominated by the market. Until now, the AMD had only hardware offerings, in the form of its large and most popular in the form of MI300 chips, but now it will be able to provide the entire system and installations.
Anyone who has worked in the system building is gaming desktop PC or large -scale servers, knowing that this is the place where the actual profit margin remains (which is why NVIDIA’s profit margins are so large).
More importantly, users like Apple, Facebook, and the usual AI mob will be more willing to sprinkle cash on full service rather than rotate themselves with hardware.
That said, while the purchase of Zillenx seemed like a good idea at the time and the AMD’s embedded sector currently has a margin of a huge operating profit of 40 %, but it will already be many years before this particular acquisition. I should imagine that the AMD will expect that buying the ZT system will bring more money and faster to help meet the reduction of gaming revenue.
Now, I understand that I can scrape to get something – maybe a full 20.52 – perhaps a full 20 rupees – so look better!
