AMD has officially announced a $3 billion agreement to sell ZT Systems’ data center infrastructure and manufacturing business to Sanmina. This deal will see Sanmina pay AMD $2.25 billion in cash upfront, along with a $300 million premium split equally between cash and equity. An additional contingent payment of $450 million will be paid over three years, based on the financial performance of the acquired assets.
Sanmina has also been designated as a preferred manufacturing partner for AMD’s upcoming cloud rack and AI solutions, indicating a continued collaboration between the two companies even after the sale. The transaction is expected to be finalized by the end of 2025.
This move comes shortly after AMD’s acquisition of ZT Systems for $4.9 billion in March 2025. Since the acquisition, AMD has been strategically positioning itself to capitalize on lucrative opportunities, and this sale aligns with those efforts.
Additionally, AMD has announced an increase in its share buyback program by $6 billion, bringing its total buyback authorization to approximately $10 billion. This strategic financial maneuver follows the company’s purchase of $749 million worth of its shares in the first quarter of 2025.
In a related development, AMD has partnered with HUMAIN, an AI-focused subsidiary of Saudi Arabia’s Public Investment Fund (PIF). Together, they aim to create a $10 billion fund to develop 500 megawatts of AI compute capacity over the next five years. HUMAIN will handle the infrastructure and energy requirements, while AMD will supply its AI compute portfolio, with plans to establish a “multi-exaflop capacity” data center in Saudi Arabia by early 2026.
This series of developments underscores AMD’s robust growth strategy and collaboration in the technology sector, promising exciting advancements in AI and computing capabilities in the near future.