Advanced Micro Devices (AMD, Financials) is exiting the hardware build side of its AI infrastructure business, selling ZT Systems' manufacturing operations to Sanmina while keeping the design expertise in-house. The move, first hinted at during the original ZT acquisition last August, is aimed at cutting time-to-market for AMD's AI solutions.

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Sanmina gains physical infrastructure, liquid cooling capabilities, and deep experience in high-volume builds for cloud providers. AMD said the retained ZT teams will help deliver faster, higher-quality deployments across its open ecosystem.

The deal is expected to close by year-end, pending approvals. Investors will be watching to see if the streamlined model improves AMD's competitive position in AI data centers.

This article first appeared on GuruFocus.

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