Comment on Internal document: AWS has planned lower spending on ZT Systems, a data-center-gear maker being acquired by AMD

Internal document: AWS has planned lower spending on ZT Systems, a data-center-gear maker being acquired by AMD

Matt Garman, the CEO of Amazon Web Services.AmazonAWS plans to reduce spending on ZT Systems as it designs more data-center gear in-house.AWS has been designing more data-center components itself to improve efficiency.AWS remains the largest cloud provider, with significant capital expenditures planned for 2025.Amazon Web Services plans to cut back on one key supplier as it designs more data-center components in-house.AWS is scaling down its spending with ZT Systems, an AI-infrastructure company that AMD agreed this year to acquire, Business Insider has learned.A confidential Amazon document from late last year obtained by BI estimated that AWS spent almost $2 billion last year on ZT Systems, which designs and manufactures server and networking products.The document said some of AWS's "server and networking racks" were "transitioning" to a custom hardware approach where it designs this equipment itself.

 

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