AMD Server Business Sold to Sanmina for $3B
Big news in the AI and server worlds: AMD’s server business has officially been sold to Sanmina for $3 billion. This significant shift is part of AMD’s larger aim to focus on AI system design and infrastructure while discontinuing its traditional manufacturing operation.
Key Highlights of the Deal !
Let’s quickly break down what’s happening with the AMD server business:
- AMD is selling ZT Systems’ server-manufacturing business to Sanmina for $3 billion.
- The deal includes $2.25 billion in cash, a $300 million premium (half cash, half equity), and a $450 million performance-based payment.
- Expected to close by end of 2025, pending regulatory approval.
- AMD will hold onto ZT Systems’ AI solutions design business.
- Sanmina is now a preferred manufacturing partner for AMD’s AI cloud rack and cluster-scale systems.
Why This Move Matters ?
This transition in AMD’s server business reflects a rising trend in which technology companies prioritise AI and software-driven solutions over traditional hardware production. For cloud providers, AI startups, and enterprise customers, this means AMD is optimising operations to provide next-generation AI systems faster and more effectively.
Sanmina taking over the AMD server manufacturing side allows AMD to focus more on AI system design and innovation, which is where the real action in the AI industry is right now.
Our Thoughts !
We think selling the AMD server business is a clever, future-proof move. It aligns perfectly with where the AI market is headed — toward more powerful, scalable, and AI-optimized infrastructure. With Sanmina handling production, AMD can double down on AI system architecture and cloud-focused AI solutions.
It’ll be interesting to see how this strategic pivot helps AMD compete with NVIDIA and Intel in the AI infrastructure race. At startswithai, we believe this deal positions AMD to become a bigger force in AI hardware innovation.
Source : TechCrunch
