AMD wants to catch up with Nvidia by buying AI company
In the fight for market shares in high-profitability Special Processors for Artificial Intelligence (AI), AMD aims to reduce the gap to market leader Nvidia with an acquisition. The chip company announced the acquisition of the Finnish AI developer Silo AI for approximately 665 million dollars. The experts from Silo are expected to further develop the software that allows customers to program complex AI models and train them on computers with AMD chips. AMD stocks rose by up to 4.7 percent on Wall Street following the announcement.
To date, Nvidia controls around 80 percent of the global market for AI Special Processors. The company profits not only from the technological superiority of its chips but also from its tailor-made software. It is designed to make it easier for developers to write applications that fully utilize the chips' potential.
In the past few months, AMD has acquired several AI specialists to strengthen its software division.
AMD's strategic purchase of Silo AI for $665 million is aimed at narrowing the gap with market leader Nvidia in the AI Special Processors sector. Despite AMD's recent acquisitions of AI specialists and the rise of its stocks after the announcement, AMD still faces a significant backlog as Nvidia currently holds a 80% share of the global market, benefiting from both advanced chips and compatible software.
