AMD to acquire Finnish AI startup Silo AI for $665 million as AI race heats up

Advanced Micro Devices (AMD) announced on Wednesday it has reached an agreement to acquire Finnish artificial intelligence startup Silo AI for approximately $665 million in cash. This strategic acquisition is aimed at bolstering the company’s AI chip capabilities to better compete with industry giant Nvidia as the AI race heats up.

By integrating Silo AI’s expertise, AMD aims to accelerate the development and deployment of AI models powered by its chips, enabling customers to build sophisticated AI solutions. The acquisition will also enhance AMD’s software development capabilities, according to the company.

As part of the acquisition agreement, Peter Sarlin, CEO and co-founder of Silo AI, will continue to lead the unit within the newly formed AMD Artificial Intelligence Group. The deal is set to close in the second half of 2024, the company said in a news release.

“Across every industry, enterprises are looking for fast and effective ways to develop and deploy AI solutions for their unique business needs,” said Vamsi Boppana, senior vice president of the Artificial Intelligence Group at AMD. “Silo AI’s team of trusted AI experts and proven experience developing leadership AI models and solutions, including state-of-the-art LLMs built on AMD platforms, will further accelerate our AI strategy and advance the build-out and rapid implementation of AI solutions for our global customers.”

While AMD has stated that the acquisition won’t immediately impact its financial performance, Vamsi Boppana, AMD’s Senior Vice President of AI, highlighted the long-term benefits. “This acquisition unlocks a significant amount of business moving forward,” Boppana said in an interview. However, AMD did not disclose specific revenue projections resulting from the deal.

Founded in 2017, Silo AI has grown into Europe’s largest private AI lab, connecting leading AI scientists with real-world problems. Headquartered in Helsinki, Finland, the company boasts a team of over 300 employees, with half holding PhDs, and has successfully delivered over 200 production-level AI projects. Silo AI’s clientele includes notable companies such as Philips, Rolls-Royce, and Unilever.

Silo AI specializes in providing end-to-end AI-driven solutions, helping customers integrate advanced AI technologies into their products and services. With operations extending across Europe and North America, the startup’s acquisition represents AMD’s latest effort to expand its footprint in the AI landscape.

This acquisition follows AMD’s recent AI-focused endeavors, including the purchase of AI software firms Mipsology and Nod.ai last year, and investments exceeding $125 million in over a dozen AI companies in the past year alone, Reuters reported.

As AMD continues to position itself as a formidable player in the AI industry, the acquisition of Silo AI underscores the company’s commitment to advancing its AI capabilities and competing with the likes of Nvidia.

Silo AI Team