Friday, July 19, 2024

AMD Expands Its Reach by Buying Silo AI, Europe’s Largest Private AI Lab

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Key Takeaways

  • Advanced Micro Devices (AMD) moved to boost its position in the artificial intelligence (AI) market by buying Silo AI.
  • The chipmaker will pay $665 for Europe’s biggest private AI lab, which is based in Finland.
  • AMD said it has invested $125 million in a dozen AI-related companies over the past 12 months, and bought two other AI companies.
  • AMD shares rose nearly 4% Wednesday afternoon following the news.

Shares of Advanced Micro Devices (AMD) rose nearly 4% Wednesday after the chipmaker said it is buying the largest private artificial intelligence (AI) lab in Europe to expand its reach in the market.

AMD is paying $665 million in cash to purchase Silo AI, which it said “represents another significant step in the company’s strategy to deliver end-to-end AI solutions based on open standards and in strong partnership with the global AI ecosystem.”

It’s the latest in a series of recent AI moves for AMD, which said it has invested $125 million in a dozen AI-related companies in the past year, and also acquired Mipsology and Nod.AI.

AMD Says Silo AI Purchase Will Accelerate AI Strategy

The company said that Silo AI’s scientists and engineers have “extensive experience developing tailored AI models, platforms and solutions for leading enterprises spanning cloud, embedded, and endpoint computing markets.” AMD added that Silo AI will become part of its Artificial Intelligence Group, with Silo AI co-founder and CEO Peter Sarlin continuing to lead the team.

Senior Vice President of the AMD Artificial Intelligence Group Vamsi Boppana said that adding Silo AI “will further accelerate our AI strategy and advance the build-out and rapid implementation of AI solutions for our global customers.”

The transaction is expected to close before the end of the year. 

AMD shares closed 3.9% higher at $183.96 Wednesday. They’ve gained nearly one-quarter of their value so far in 2024.

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