(Reuters) – AMD announced on Tuesday its plans to acquire Nod.ai, an artificial intelligence startup, in a bid to enhance its software capabilities. The move comes as AMD strives to catch up with its rival chipmaker, Nvidia, by investing heavily in the critical software needed for its advanced AI chips.
Nvidia has gained a significant advantage in the AI chip market through its software development and ecosystem. In response, AMD has committed to investing in and developing a unified software collection to power its various 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 with AMD’s strategy as the startup’s technology allows for easier deployment of AI models specifically tailored for AMD chips. Nod.ai primarily sells its technology to large data center operators and other customers.
The terms of the deal were not disclosed, but PitchBook data shows that Nod.ai, based in Santa Clara, California, has raised approximately $36.5 million.
Earlier this year, AMD established its AI group, which will house the newly acquired Nod.ai. The group currently employs around 1,500 engineers, the majority of whom specialize in software. AMD plans to expand the team further by hiring an additional 300 employees this year and more 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.
Apart from Nod.ai, AMD recently made another acquisition, according to Peng. When asked if the company plans to strengthen its portfolio with further acquisitions, Peng replied, “We’re always looking.”
Reporting by Max A. Cherney in San Francisco; Editing by Lincoln Feast.
Credit: The Star : Tech Feed
