Advanced Micro Devices stock (NASDAQ: AMD) jumped during intraday trading Wednesday following the announcement of its acquisition of Finnish artificial intelligence startup Silo AI for approximately $665 million in cash.
Advanced Micro Devices (AMD) has announced an agreement to acquire Silo AI, Europe’s largest private AI lab, in an all-cash transaction valued at around $665 million. This strategic move aims to enhance its AI chip capabilities to better compete with industry leader Nvidia.
Building and training large language models pose significant challenges, even for major tech companies. Through the acquisition of Silo AI, AMD seeks to improve the development and deployment of AMD-powered AI models. This acquisition will also assist potential customers in building complex AI models utilizing AMD’s chips. Additionally, Silo AI will strengthen AMD’s software development capabilities.
The deal will reportedly not impact AMD’s financial performance. However, Vamsi Boppana, AMD’s Senior Vice President of AI, emphasized its long-term business potential. Boppana said in an interview,
“This deal unlocks a significant amount of business moving forward.”
Silo AI, headquartered in Helsinki, Finland, specializes in end-to-end AI-driven solutions that enable customers to integrate advanced AI technology into their products and services. The startup operates in both Europe and North America, with an impressive clientele that includes Philips, Rolls-Royce, and Unilever.
Following the acquisition, Peter Sarlin, CEO and co-founder of Silo AI, will continue to lead the unit within the AMD Artificial Intelligence Group. Both companies plan to finalize the deal in the second half of 2024.
This acquisition marks another significant step for AMD as it seeks to expand its presence in the AI sector. Last year, AMD acquired AI software firms Mipsology and Nod.ai and has invested over $125 million across a dozen AI companies in the past 12 months.
Advanced Micro Devices Stock (NASDAQ: AMD) Price Action
AMD stock rose 3.87% on Wednesday, closing at $183.96, marking an 11.96% increase for the week. The trading volume was 89,969,057 shares, significantly higher than the average daily volume of 52.05 million.
