AMD to Acquire Finnish AI Startup SiloAI for $665M to Boost AI Chip Capabilities

TapTechNews July 10th news, chip giant AMD announced on Wednesday that it will spend approximately 665 million US dollars (TapTechNews note: currently about 4.843 billion Chinese yuan) in cash to acquire Finnish artificial intelligence startup SiloAI. This move aims to enhance its artificial intelligence chip capabilities and compete with industry leader NVIDIA.

The construction and training of large language models is a challenge even for tech giants. AMD said that acquiring SiloAI will help it improve the development and deployment of AMD-driven artificial intelligence models, and help potential customers build complex artificial intelligence models using AMD's chips. At the same time, SiloAI will also strengthen AMD's software development capabilities.

This transaction will not affect AMD's financial performance, but it will unlock huge potential for future business, Vamsi Boppana, AMD's senior vice president of artificial intelligence, said in an interview. However, AMD refused to disclose how much revenue this acquisition will bring to it in the future.

SiloAI, located in Helsinki, Finland, focuses on end-to-end AI-driven solutions that can help customers integrate this technology into their products and services. This startup has offices in both Europe and North America, and its clients include well-known enterprises such as Philips, Rolls-Royce, and Unilever.

AMD said that Peter Sarlin, the CEO and co-founder of SiloAI, will continue to lead the department and become part of AMD's artificial intelligence group. This transaction is expected to be completed in the second half of 2024.

This acquisition is the latest step in a series of expansion measures of AMD in the field of artificial intelligence. Last year, the company acquired the artificial intelligence software company Mipsology and Nod.ai, and invested more than 125 million US dollars in more than a dozen artificial intelligence companies in the past 12 months.