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Source: ReutersAs part of an endeavor to improve its software skills, AMD announced on Tuesday that it intends to acquire the artificial intelligence firm Nod.ai.
Advanced Micro Devices (AMD.O), which is vying with rival chipmaker Nvidia (NVDA.O), intends to make significant investments in the vital software required for the company’s cutting-edge AI devices. Nvidia’s software and software developer ecosystem has given it a significant competitive edge in the AI processor market over the course of more than ten years of development.
To power its range of CPUs, AMD has committed to investing in and developing a single software suite.
According to AMD President Victor Peng, “We are executing to that strategy,” during a Reuters interview. “And doing it through internal investment as well as external acquisitions.”
The plan makes sense in light of the acquisition of Nod.ai, whose technology makes it easier for businesses to implement AI models optimized for AMD processors. Among other clients, Nod.ai sells its technology to big data center operators.
The conditions of the sale were not disclosed by AMD. situated on information from PitchBook, Nod.ai, a company situated in Santa Clara, California, has raised about $36.5 million.
According to Peng, AMD established the AI division earlier this year, which will be home to the Nod.ai acquisition. Currently, the company employs 1,500 engineers, the great majority of whom work in the software industry. AMD intends to recruit 300 more engineers to the team this year, and even more in 2024.
Senior vice president of AMD’s Artificial Intelligence Group Vamsi Boppana stated, “We have been growing rapidly and have plans for next year as well.”
According to Peng, this is the company’s second acquisition in as many months, following Nod.ai. Peng responded to a question about whether the company intended to expand its portfolio through more acquisitions by saying, “We’re always looking.”
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