Reuters, 10 October – As part of its endeavor to improve its software skills, AMD announced on Tuesday that it intends to acquire the artificial intelligence firm Nod.ai.
Advanced Micro Devices (AMD.O) intends to make significant investments in the crucial software required for the company’s cutting-edge AI chips in its effort to catch rival chipmaker Nvidia (NVDA.O). Through its software and the community of software developers, Nvidia has developed a significant competitive edge in the market for AI chips over the course of more than a decade of work.
To power the numerous CPUs that the firm produces, AMD has committed to establish and invest in a uniform suite of software.
In an interview with Reuters, AMD president Victor Peng stated, “We are executing to that strategy.” “And doing it through internal investment as well as external acquisitions.”
The purchase of Nod.ai fits into the plan because of how readily businesses can utilize its technology to deploy AI models that are optimized for AMD’s processors. Among other clients, Nod.ai sells its technology to big data center operators.
The deal’s conditions were kept a secret by AMD. According to information from PitchBook, the Santa Clara, California-based Nod.ai has raised about $36.5 million.
According to Peng, AMD established the AI group earlier this year, which will house the Nod.ai acquisition. About 1,500 engineers work for the division, the vast majority of them are involved in software, and AMD expects to keep growing the team by adding 300 new employees this year and more in 2024.
Vamsi Boppana, senior vice president of AMD’s artificial intelligence group, said the company has been expanding quickly and has ambitions for the upcoming year.
According to Peng, this is the company’s second acquisition in recent months. When asked if the business intended to expand its purchases portfolio, Peng responded, “We’re always looking.”
Max A. Cherney reported from San Francisco, while Lincoln Feast edited the story.
