Semiconductor company Advanced Micro Devices (AMD), a major industry competitor of Nvidia, announced on Wednesday the signing of an agreement to acquire Silo AI.

Silo AI is “the largest private AI lab in Europe,” and AMD is especially optimistic about the additions of Silo AI personnel to their team. According to AMD’s press release, “The Silo AI team consists of world-class AI scientists and engineers with extensive experience in developing tailored AI models, platforms and solutions for leading enterprises spanning cloud, embedded and endpoint computing markets.” The deal is expected to be finalized later in the year.

AMD is set to purchase the business for $665 million in an all-cash transaction, though the specifics of the deal are subject to change until closing. In the last 12 months, AMD has invested over $125 million in 12 AI companies and also acquired Mipsology and

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Silo AI is based in Helsinki, Finland, and has attracted customers of the caliber of Allianz, Philips, Rolls-Royce, and Unilever. AMD describes one of their products as “end-to-end AI-driven solutions that help customers integrate AI quickly and easily into their products, services and operations.” Silo AI also makes advanced open-source and multilingual Large Language Models such as Poro and Viking.

AMD published the press release on Wednesday morning at 9:05 EST, and their stock rose 5.6 percent to a daily high of $187.02 per share at 10:22 am EST. Trading later cooled off on Wednesday, falling below $183 per share shortly before regular trading hours closed. The market capitalization of the company remains just under $300 billion.

AMD is a competitor with Nvidia for market share in the burgeoning AI industry. Both companies sell microprocessors and graphics processing units, in high demand by AI developers. Nvidia traded on Wednesday at around $134 per share, giving them a market capitalization of around $3.3 trillion. In the most recent quarterly income statements, Nvidia reported $14.88 billion in profit on $26.04 billion in revenue, while AMD reported $123 million in profit on $5.5 billion in revenue (both of which are GAAP accounting numbers).

While Nvidia has become a superstar among tech stocks in recent years, the company is also suspected by some analysts of engaging in fraud. Weeks ago, Nvidia CEO Jensen Huang spoke at a company shareholder meeting, announcing a robotics initiative and explaining what led to their recent success.

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