AMD to acquire AI software firm Nod.ai to challenge Nvidia
11 Oct 2023
Advanced Micro Devices (AMD) revealed on Tuesday, 10 October, its plans to buy Nod.ai, an artificial intelligence startup. This will be done as an effort to improve their software capabilities.
AMD is in an intense race with its rival chipmaker, Nvidia, and hence plans to invest heavily in the software necessary to create advanced AI chips. Nvidia has been researching AI chips for more than a decade now and has built a powerful base in the AI chip market through its software.
AMD wants to invest in and build software that could power the chips made by the company.
Victor Pend, President, AMD, has confirmed their commitment to the strategy. AMD wants to do this through both internal investment and external acquisitions. Nod.ai would be the perfect external acquisition to implement AMD’s strategy. This is because Nod.ai has the capability to produce AI models that are compatible with the chips made by AMD. Nod.ai also sells its technology to large data center operators. Nod.ai is based in Santa Clara, California, and according to PitchBook, it has raised $36.5 million.
The terms of this deal have not been disclosed by AMD yet.
In early 2023, AMD created its AI division, which will house Nod.ai after the deal is done. AMD's AI team has 1,500 engineers, mostly software engineers, and the company plans to hire 300 more this year and even more in 2024.
AMD's Senior Vice President of Artificial Intelligence, Vamsi Boppana, said that the company has been growing rapidly and has plans for further growth next year.
This acquisition of Nod.ai will be AMD’s second acquisition in the past few months, and are likely to add more acquisitions in order to improve the company's portfolio.