Trends
AMD snags Silo AI for $665M in a leap forward in the AI arena
July 10, 2024, chip giant AMD announced it will spend around $665 million to acquire Finnish artificial intelligence startup Silo AI. AMD’s shares jumped more than 5.7% in early trading Wednesday, with gains then falling back to about 3% at $182.51.
Headline
July 10, 2024, chip giant AMD announced it will spend around $665 million to acquire Finnish artificial intelligence startup Silo AI. AMD’s shares jumped more than 5.7% in early trading Wednesday, with gains then falling back to about 3% at $182.51.
Context
OUR TAKE “With any startup boom, there’s a pattern called the ‘chair grabbing game’. In the AI era, the number of chairs will be further reduced, and the challenge of becoming an AI enterprise giant will be much greater than in the mobile internet era.” Fang Han, chairman and CEO of Kunlun Wanwei, said. Currently, AMD is also targeting the AI boom, which has propelled NVIDIA to become the world’s most valuable chipmaker. AMD, on the other hand, is still a relatively new player in the field of AI development, and to continue to acquire more AI software expertise and intellectual property will inevitably mean ongoing operations and investment for AMD, which is why the company spent $665 million to acquire Silo AI, a Finnish AI startup. –Elodie Qian, BTW reporter On July 10, 2024, chip giant AMD announced that it will spend around $665 million to acquire Finnish artificial intelligence startup Silo AI to bolster its AI chip capabilities. According to Dealroom data, the size is the largest private AI startup acquisition in Europe since Google bought UK-based DeepMind in 2014 for around £400 million.
Evidence
Pending intelligence enrichment.
Analysis
Spurred by the news, AMD’s shares jumped more than 5.7% in early trading Wednesday, with gains then falling back to about 3% at $182.51. In 2024, AMD’s stock is up about 20%, trailing the Philadelphia Stock Exchange’s Semiconductor Index’s 38% gain and Nvidia’s 165% gain. Even so, AMD’s market cap is still near the highest level in the company’s history. Headquartered in Helsinki, Finland, with operations across Europe and North America, Silo AI specialises in end-to-end AI-driven solutions that help customers quickly and easily integrate AI into their products, services and operations. They work across a diverse range of markets, with clients including Allianz, Philips, Rolls-Royce and Unilever. In addition to the SiloGen modelling platform, Silo AI also creates state-of-the-art open source multi-language LLMs such as Poro and Viking on the AMD platform. The building and training of large-scale language models is a challenge even for tech giants, and AMD says the Silo AI acquisition will help it improve the development and deployment of AMD-powered AI models and help potential customers build complex AI models using AMD’s chips. Silo AI will also strengthen AMD’s software development capabilities. The acquisition is expected to close in the second half of 2024. Peter Sarlin, CEO and co-founder of Silo AI, will continue to lead the Silo AI team as part of AMD’s Artificial Intelligence Group, reporting to Vamsi Boppana, senior vice president of AMD.
Key Points
- July 10, 2024, chip giant AMD announced it will spend around $665 million to acquire Finnish artificial intelligence startup Silo AI.
- AMD’s shares jumped more than 5.7% in early trading Wednesday, with gains then falling back to about 3% at $182.51.
Actions
Pending intelligence enrichment.
