AMD has announced its largest AI-focused acquisition to date, purchasing Europe’s largest private AI lab, Silo AI, for $665 million in cash. This move aims to address AMD’s previously identified gap in AI expertise, an area where Nvidia has held a dominant position.
Despite being the second-largest GPU provider globally, AMD has often trailed Nvidia in the AI market. However, AMD is making strides with its MI300 AI chips, collaborating with major companies like Microsoft and Dell Technologies. The acquisition of Silo AI, a Finnish company founded in 2017, is a strategic effort to enhance AMD’s AI offerings. Silo AI specializes in industry-specific AI solutions and research on AI best practices.
Vamsi Bopanna, AMD’s senior vice president of AI, emphasized the importance of this acquisition in accelerating AMD’s AI capabilities and revenue growth. The MI300 family of AI accelerators, announced last year, is projected to generate $4 billion in revenue. AMD’s MI300-based instances are already available on Microsoft’s Azure cloud infrastructure, though software integration remains a challenge.
Silo AI has a proven track record with enterprise customers like Allianz, Rolls-Royce, and Unilever, and its experience will help AMD deliver comprehensive AI solutions. This acquisition adds 300 AI experts to AMD’s team, including 125 Ph.D.s, significantly boosting its AI talent pool.
Over the past year, AMD has quietly acquired several AI companies, but this is by far its most significant investment. The acquisition aims to close the gap with Nvidia, particularly in software and real-world AI implementations. AMD CEO Lisa Su is committed to positioning the company as a formidable competitor in the AI market.
