AMD, the computer chip manufacturer, has announced its plans to acquire Nod.ai, an artificial intelligence (AI) software startup, in an effort to catch up with its rival Nvidia. Nvidia has established a dominant position in the market for AI chips through its software development ecosystem. In response, AMD aims to strengthen its software capabilities and build a unified collection of software to power its various chips. The acquisition of Nod.ai aligns with this strategy, as its technology allows for easier deployment of AI models that are optimized for AMD’s chips.
“We are executing to that strategy,” says AMD president Victor Peng. “And doing it through internal investment as well as external acquisitions.” The terms of the deal have not been disclosed, but Nod.ai has raised approximately $36.5 million in funding prior to the acquisition.
Earlier this year, AMD established an AI group that will incorporate the Nod.ai acquisition. The group currently employs around 1,500 engineers, with a majority focused on software development. AMD plans to continue expanding the team by hiring 300 more engineers this year, with further expansion anticipated in 2024.
“We have been growing rapidly, with plans for next year as well,” notes Vamsi Boppana, Senior Vice President of the Artificial Intelligence Group at AMD. When asked about the possibility of additional acquisitions, Peng states, “We’re always looking.”
Through this acquisition, AMD aims to enhance its software capabilities and catch up with Nvidia in the fiercely competitive AI chip market. By investing in both internal development and external acquisitions, AMD plans to offer a comprehensive software ecosystem that supports its advanced AI chips. As the company continues to grow its team of engineers, it is clear that AMD is fully committed to establishing a strong presence in the AI space.
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