Advanced Micro Devices (AMD) is set to acquire Finland-based artificial intelligence startup Silo AI for $665 million in cash.
The acquisition will enable AMD to enhance its AI chip capabilities in order to compete against industry leader Nvidia. AMD’s operating expenses increase 10 percent to $1.7 billion in Q1 2024 as it invested aggressively in R&D and marketing activities to address the significant AI growth opportunities.
The acquisition of Silo AI, which was founded in 2017, will help AMD improve the development and deployment of AMD-powered AI models and help potential customers build complex AI models with the company’s chips. Dr. Peter Sarlin, Dr. Tero Ojanpera, Professor Kaj-Mikael Bjork, Juha Hulkko, Johan Kronberg and Ville Hulkko are the founders of Silo AI.
Silo AI, which has more than 300 AI scientists and engineers, will also strengthen AMD’s software development capabilities. Silo AI creates open source multilingual LLMs, such as Poro and Viking, on AMD platforms in addition to its SiloGen model platform.
“While the deal will not impact AMD’s financial performance, it unlocks a significant amount of business moving forward,” Vamsi Boppana, AMD Senior Vice President of AI, told Reuters.
AMD declined to discuss how much business the acquisition would generate over time. AMD has never disclosed its revenue from AI related business.
Helsinki, Finland-based Silo AI specializes in AI-driven solutions that help customers integrate the tech into their products and services.
The AI startup works with companies, including Philips, Rolls-Royce and Unilever, Allianz, T-Mobile, Intel, Nvidia, among others. Silo AI has operations in Europe and North America. It has offices in Helsinki, Stockholm, Copenhagen, Vancouver, Amsterdam, Turku, Tampere, Jyvaskyla.
Silo AI’s CEO and co-founder Peter Sarlin will continue to lead the unit as part of the AMD Artificial Intelligence Group. Peter Sarlin will report to Vamsi Boppana, AMD Senior Vice President of AI.
The deal is expected to close in the second half of 2024.
Last year, AMD acquired AI software firms Mipsology and Nod.ai. AMD has invested more than $125 million across a dozen AI companies over the last 12 months.
