AMD's $665 Million Bet: Acquiring Finnish Startup Silo AI to Conquer AI
Yahoo Finance2 weeks ago
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AMD's $665 Million Bet: Acquiring Finnish Startup Silo AI to Conquer AI

AMD
SiloAI
ArtificialIntelligence
Acquisition
Tech

Summary:

  • AMD is acquiring Finnish AI startup Silo AI for $665 million to bolster its AI chip capabilities.

  • The acquisition will strengthen AMD's software development and enable it to provide better support for customers building complex AI models.

  • Silo AI specializes in end-to-end AI solutions, serving clients like Philips, Rolls-Royce, and Unilever.

  • This acquisition marks AMD's latest move in its strategic expansion into the AI landscape, following recent investments in AI software firms and companies.

  • The deal is expected to close in the second half of 2024, with Silo AI's CEO continuing to lead the unit within AMD's AI group.

AMD Acquires Finnish AI Startup Silo AI for $665 Million to Boost AI Capabilities

Advanced Micro Devices (AMD) announced on Wednesday that it will acquire Finnish artificial intelligence startup Silo AI for approximately $665 million in cash. This move signifies AMD's ambition to enhance its AI chip capabilities and compete against industry leader Nvidia.

Building and training large language models is a challenging task, even for major tech giants. Acquiring Silo AI will equip AMD with the ability to improve the development and deployment of AI models powered by AMD chips. This will enable AMD to assist potential customers in building sophisticated AI models utilizing AMD's technology.

Furthermore, the acquisition will strengthen AMD's software development capabilities. While the deal is not anticipated to impact AMD's financial performance in the short term, AMD Senior Vice President of AI, Vamsi Boppana, emphasizes that it will unlock significant business opportunities moving forward.

Silo AI specializes in end-to-end AI-driven solutions, helping businesses integrate AI into their products and services. With operations across Europe and North America, Silo AI boasts a client base that includes renowned companies like Philips, Rolls-Royce, and Unilever.

The deal is expected to be finalized in the second half of 2024, with Silo AI CEO and co-founder Peter Sarlin continuing to lead the unit within the AMD Artificial Intelligence Group. This acquisition follows AMD's strategic investments in AI, including acquisitions of AI software firms Mipsology and Nod.ai in the past year. AMD has also committed over $125 million to supporting a dozen AI companies within the last year.

This strategic move showcases AMD's commitment to expanding its presence in the rapidly evolving AI landscape.

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