Advanced Micro Devices (AMD) said Monday it will sell ZT Systems' data center infrastructure manufacturing business to Sanmina for $3 billion in cash and stock while retaining ZT’s design and customer support teams to bolster its AI and cloud computing push.

AMD will sell the server-manufacturing business of recently acquired ZT Systems to Sanmina in a $3 billion deal, making the U.S.-based contract manufacturer its partner for building AI hardware as the chip designer works to onshore supply chains.