AMD Expands Its Reach with Acquisition of Silo AI, Europe’s Largest Private AI Lab

AMD Expands Its Reach with Acquisition of Silo AI, Europe’s Largest Private AI Lab

Important points

  • Advanced Micro Devices (AMD) has moved to strengthen its position in the artificial intelligence (AI) market with the acquisition of Silo AI.
  • The chipmaker will pay $665 to Europe’s largest private artificial intelligence lab, based in Finland.
  • AMD announced that it has invested $125 million in more than a dozen AI companies and acquired two more in the past 12 months.
  • AMD shares rose nearly 4% Wednesday afternoon following the news.

AMD shares rose nearly 4% on Wednesday after the chipmaker announced it would expand its market influence by purchasing the largest private artificial intelligence (AI) lab in Europe.

AMD is paying $665 million in cash to acquire Silo AI, saying it’s “another important step in the company’s strategy to deliver end-to-end AI solutions based on open standards and in strong partnership with the global AI ecosystem.”

This is the latest in a series of AI moves by AMD, which last year announced it invested $125 million in a dozen AI-related companies, as well as acquiring Mipsology and Nod.AI.

AMD Says Silo AI Acquisition Will Accelerate AI Strategy

Silo AI’s scientists and engineers have “extensive experience developing custom AI models, platforms, and solutions for leading enterprises spanning the cloud, embedded, and edge computing markets,” the company said. AMD added that Silo AI will become part of its Artificial Intelligence Group, and Silo AI co-founder and CEO Peter Sarlin will continue to lead the team.

Vamsi Boppana, Senior Vice President of AMD Artificial Intelligence Group, said the addition of Silo AI “will further accelerate our AI strategy and advance the creation and rapid implementation of AI solutions for our global customers.”

The transaction is expected to be completed before the end of the year.

AMD shares closed up 3.9% at $183.96 on Wednesday. They have gained nearly a quarter of their value so far in 2024.