chip giant AMD announced on Wednesday that it will spend about $665 million (currently about Rs. 4,843 million) in cash to acquire Finnish AIStartups Silo AI. The move is aimed at bolstering its artificial intelligence chip capabilities to compete with industry leader Nvidia.
Building and training large-scale language models can be a challenge even for tech giants. amd said.Silo AI acquisition will help it improve development and deployment of AMD-driven AI modelsand help potential customers build complex AI models using AMD's chips. Silo AI will also strengthen AMD's software development capabilities.
"This deal won't impact AMD's financial results, but it will unlock great potential for the business going forward," Vamsi Boppana, AMD's senior vice president of artificial intelligence, said in an interview. AMD, however, declined to say how much the acquisition will generate for it in the future.
Helsinki, Finland-based Silo AI specializes in end-to-end AI-driven solutions that help customers integrate this technology into their products and services. The startup has offices in Europe and North America, and its customers include well-known companies such as Philips, Rolls-Royce and Unilever.
Peter Sarlin, CEO and co-founder of Silo AI, will continue to lead the division as part of AMD's Artificial Intelligence Group, AMD said. The deal is expected to close in the second half of 2024.
The acquisition is the latest in a series of expansionary moves by AMD in the artificial intelligence space. Last year, the company acquired AI software companies Mipsology and Nod.aiand has invested more than $125 million in more than a dozen AI companies in the past 12 months.