AI Chip Giants Start 'Investment Race': Who Will Lead the Future of Technology?

On August 19, AMD announced plans to acquire server manufacturer ZT Systems for $4.9 billion, a move that underscores its commitment to advancing AI infrastructure. ZT Systems specializes in providing AI solutions for leading hyper-scale computing companies, and this acquisition marks a significant step in AMD's strategy to deliver industry-leading training and inference solutions that integrate chip, software, and system technologies.

As reported by DigiTimes, ZT Systems holds the top position among high-end AI server manufacturers, with a 36.7% share of shipments in 2023, largely due to its role as a primary supplier for Microsoft. AMD's Chair and CEO, Dr. Lisa Su, indicated that the acquisition aims to enhance the company's data center capabilities and facilitate rapid deployment of AI solutions for cloud and enterprise customers.

AMD has been proactive in strengthening its AI capabilities. In July, the company announced an all-cash acquisition of Silo AI, Europe's largest private AI laboratory, valued at approximately $665 million. Over the past year, AMD has invested more than $125 million in several AI companies.

Meanwhile, competitors have also been active in the AI sector. Reports indicate that NVIDIA has invested in at least 16 companies this year. Additionally, on August 18, South Korean AI chip manufacturers Sapeon Korea and Rebellions signed a merger agreement, creating a unicorn within the Korean AI chip industry.

A consensus is emerging among major tech firms about the importance of acquiring or investing in AI companies. According to Stocklytics, Apple led the way with 32 AI acquisitions in 2023, followed by Alphabet with 21, Meta with 18, and Microsoft with 17.

The rapidly evolving AI landscape has significantly increased demand for AI computing, leading to a trend of interconnected chips and driving robust growth in the overall server market. AMD's acquisitions are essential for bridging the gap with its competitors.

In addition to acquisitions, collaboration is becoming a key focus in the global AI industry. During the 2024 Open Compute China Summit, the Open Compute Module (OCM) Specification was launched, with initial members including prominent entities like the China Electronic Technology Standardization Institute, Baidu, and Intel, with the goal of promoting high-quality, rapid growth in the computing industry.

In May, a coalition of eight tech giants, including Intel, Google, Microsoft, and AMD, announced the formation of a new industry organization called the SuperAccelerator Link Promotion Group. This initiative aims to standardize connections among AI accelerator chips within data centers, underscoring the collaborative nature of advancements in the semiconductor and AI sectors.