AMD Sets Out To Compete With Nvidia in Artificial Intelligence Race
(Reuters) – AMD said on Tuesday it plans to buy an artificial intelligence startup called Nod.ai as part of an effort to strengthen its software capabilities.
In a race to catch up with rival chipmaker Nvidia, Advanced Micro Devices plans to invest heavily in critical software essential to the company’s advanced AI chips. With more than a decade of work, Nvidia has built a strong advantage in the artificial intelligence chip market through its software and software developer ecosystem.
AMD has vowed to invest in and build a unified software suite that uses the company’s chips.
“We are implementing this strategy,” AMD President Victor Peng said in an interview with Reuters. “And it’s done through internal investment and external acquisitions.”
The acquisition of Nod.ai fits the strategy because its technology allows companies to more easily deploy AI models tuned to AMD’s chips. Nod.ai sells its technology to large data center operators, among others.
AMD did not disclose the terms of the deal. Santa Clara, California-based Nod.ai has raised about $36.5 million, according to PitchBook.
Earlier this year, AMD created an artificial intelligence group that will invest in the Nod.ai acquisition, Peng said. The group employs about 1,500 engineers — the vast majority of them software — and AMD plans to continue expanding the team by an additional 300 this year and more in 2024.
“We’ve grown fast, and there are plans for next year as well,” said Vamsi Boppana, head of AMD’s artificial intelligence group.
The acquisition of Nod.ai is the company’s second in recent months, Peng said. Asked if the company plans to bolster its portfolio with additional acquisitions, Peng said: “We’re always looking.”
