AMD to acquire AI software startup in effort to catch Nvidia
AMD, the renowned chipmaker, has announced its plans to acquire Nod.ai, an artificial intelligence startup, in a move to enhance its software capabilities. This strategic move is aimed at closing the gap between AMD and its competitor, Nvidia, in the race to dominate the AI chip market.
Nvidia has gained a significant advantage in this market through its powerful software and developer ecosystem. Recognizing the importance of software in driving the success of its advanced AI chips, AMD is committed to investing heavily in building a comprehensive collection of software to power its diverse range of chips.
“We are executing to that strategy,” stated AMD President Victor Peng in an interview with Reuters. “And doing it through internal investment as well as external acquisitions.” The acquisition of Nod.ai aligns perfectly with this strategy, as its technology enables companies to seamlessly deploy AI models specifically optimized for AMD’s chips. Nod.ai has a strong customer base, including large data center operators, making it an ideal addition to AMD’s portfolio.
Although the financial details of the deal have not been disclosed, Nod.ai has already raised approximately $36.5 million in funding, according to PitchBook data. This acquisition follows the establishment of AMD’s AI group earlier this year, which will now incorporate Nod.ai. The group, consisting of around 1,500 engineers, primarily focuses on software development. AMD plans to expand the team further by hiring an additional 300 engineers this year, with more hires expected in 2024.
“We have been growing rapidly, with plans for next year as well,” stated Vamsi Boppana, Senior Vice President of the Artificial Intelligence Group at AMD. This acquisition marks AMD’s second in recent months, demonstrating the company’s commitment to strengthening its position in the market. When asked about future acquisitions, Peng hinted that AMD is always on the lookout for opportunities to enhance its portfolio.
With this latest move, AMD is poised to make significant strides in the AI chip market, challenging Nvidia’s dominance. By investing in cutting-edge software and expanding its talented team, AMD is positioning itself as a formidable player in the AI industry. As the company continues to innovate and grow, the future looks bright for AMD and its pursuit of AI excellence.