AMD’s $665 Million Deal Aims to Outsmart Nvidia in AI Technology

AMD is paying $665 million to buy the Finnish AI company Silo AI in order to make its AI chips better and fight with Nvidia.

On Wednesday, Advanced Micro Devices announced that it would buy the Finnish AI company Silo AI for approximately $665 million in cash. This comes at a time when AI chips are becoming more and more competitive. The deal is an attempt to make AMD’s AI chips better so that they can fight better with Nvidia Corporation, which is their biggest rival.

It’s hard to train and build big language models, even for the biggest tech companies. AMD said that by buying Silo AI, it will be able to improve and use AI models that are powered by AMD and help possible customers use the company’s chips to build more complex AI models.

AMD is also likely to do a better job of making software after the purchase. The deal won’t have any direct effect on AMD’s finances, but Vamsi Boppana, Senior Vice President of AI at AMD, said in an interview that it opens up a lot of business for the company in the future.

But AMD didn’t give any specific numbers about how much business this deal would bring in.

The Helsinki, Finland-based company Silo AI offers customers AI-driven solutions that cover the whole process by incorporating AI technology into their goods and services. Along with working with well-known brands like Rolls-Royce, Unilever, and Philips, this business has done work in both Europe and North America.

Continuing AI Expansion

AMD said that Peter Sarlin, CEO and co-founder of Silo AI, will still be in charge of the unit as it becomes part of the AMD Artificial Intelligence Group.

The latest move in a long line of strategic moves made by AMD to move forward in the AI space is this deal. AMD also bought AI software companies Mipsology and Nod.ai last year. In the past year, it has put more than $125 million into 12 AI companies.