AMD Ventures into AI with Nod.ai Acquisition in Bid to Rival Nvidia

AMD acquires Nod.ai, an AI startup, to strengthen its software capabilities, intensifying competition with industry leader Nvidia. Details undisclosed.

Oct 10, 2023 - 09:22
Oct 10, 2023 - 09:23
 138
AMD Ventures into AI with Nod.ai Acquisition in Bid to Rival Nvidia
AMD Ventures into AI with Nod.ai Acquisition in Bid to Rival Nvidia

In a strategic move to bolster its software capabilities, Advanced Micro Devices (AMD) announced its acquisition of Nod.ai, an artificial intelligence startup. This endeavor is part of AMD's broader initiative to compete with industry giant Nvidia.

Nvidia has long held sway in the AI chip market, largely due to its formidable software development ecosystem. In response, AMD is committing substantial resources to develop the critical software necessary for its advanced AI chips.

Victor Peng, President of AMD, affirmed the company's dedication to this strategy, stating, "We are executing to that strategy," and emphasized their commitment to both internal investment and external acquisitions.

The acquisition of Nod.ai seamlessly aligns with this vision. Nod.ai's technology facilitates the deployment of AI models tailored specifically for AMD's chips, making it an invaluable addition to the company's portfolio. The startup primarily serves large data center operators.

While specific financial details of the deal remain undisclosed, Nod.ai, headquartered in Santa Clara, California, has garnered approximately $36.5 million in funding, according to PitchBook data.

Earlier this year, AMD took a significant step by establishing an AI group to accommodate the Nod.ai acquisition. This group, predominantly composed of software-related engineers, currently employs about 1,500 professionals. AMD envisions further expansion with the addition of 300 more hires this year, and plans for continued growth into 2024.

Vamsi Boppana, Senior Vice President of the Artificial Intelligence Group at AMD, underscored the company's rapid growth and expressed anticipation for further expansion in the upcoming year.

This acquisition marks the second for AMD in recent months. When questioned about potential future acquisitions, Peng confirmed, "We're always looking." This move positions AMD firmly in the race to dominate the AI chip market alongside Nvidia.

Also Read: iPhone 15 Overheating Concerns, Promises Software Fix

iShook Opinion Curated by iShook Opinion and guided by Founder and CEO Beni E Rachmanov. Dive into valuable financial insights at ishookfinance.com for expert articles and latest news on finance.