AMD to expand AI capabilities with $665m acquisition of Silo AI

AMD (NASDAQ: AMD) has reached a definitive agreement to acquire Silo AI, the largest private artificial intelligence laboratory in Europe, for approximately $665 million in an all-cash transaction. This strategic move is aimed at bolstering AMD’s end-to-end AI solutions and enhancing its collaboration within the global AI ecosystem. The acquisition is part of AMD’s broader strategy to strengthen its AI capabilities through partnerships and innovations.

Silo AI, based in Helsinki, Finland, with additional operations in Europe and North America, is renowned for its cutting-edge AI-driven solutions and leadership in developing large language models (LLMs) and AI platforms. The company’s team, led by CEO and co-founder Peter Sarlin, will join AMD’s Artificial Intelligence Group under the leadership of Vamsi Boppana, senior vice president at AMD. Sarlin will continue to lead the Silo AI team, ensuring continuity in innovation and operations.

The integration of Silo AI’s expertise is expected to accelerate AMD’s AI strategy, particularly in the deployment of state-of-the-art AI models and enterprise solutions. Silo AI has a proven track record with high-profile clients like Allianz, Philips, Rolls-Royce, and Unilever, offering solutions that seamlessly integrate AI into various products and services. This acquisition will allow AMD to leverage Silo AI’s advanced technologies and skilled workforce to enhance its product offerings and customer engagement.

Industry leaders have positively received the acquisition, noting the potential for AMD to make significant advances in AI technology. Nishant Batra, Chief Strategy and Technology Officer at Nokia, remarked on the long-term partnership with Silo AI and the enhanced capabilities expected from the AMD collaboration. Additionally, Dr. Pekka Manninen from the CSC-IT Center for Science in Finland highlighted Silo AI’s contributions to training LLMs on Europe’s fastest supercomputer, LUMI, powered by AMD technology.

The acquisition is slated to close in the second half of 2024, subject to customary closing conditions, including regulatory approvals and shareholder consent. Upon completion, Silo AI will bolster AMD’s portfolio and enhance its position in the AI technology sector, potentially driving growth and innovation in AI applications worldwide.

This acquisition represents a significant expansion of AMD’s investment in AI, following over $125 million invested in a dozen AI companies in the past year and the acquisitions of Mipsology and Nod.ai. The move is set to solidify AMD’s leadership in AI computing platforms and support its partners within the AMD AI ecosystem.

The transaction not only underscores AMD’s commitment to advancing AI technology but also highlights the growing importance of AI solutions in global business strategies. As AMD integrates Silo AI’s capabilities, it will likely set new benchmarks for innovation in the tech industry, offering more robust and comprehensive AI solutions to meet the evolving demands of businesses and consumers alike.