AMD Acquires Silo AI to Expand Enterprise AI Capabilities

Chipmaker Advanced Micro Devices (AMD) announced on Wednesday a definitive agreement to acquire Silo AI, the largest private artificial intelligence lab in Europe, in an all-cash transaction valued at $665 million. The news led to a rise in AMD stock.

Expansion of Enterprise AI Solutions

AMD stated that this acquisition will enhance its enterprise AI solutions on a global scale. Silo AI has developed customized AI models, platforms, and solutions for leading enterprises in various markets, including cloud, embedded, and endpoint computing. Notable customers of Silo AI include Allianz, Philips, BMW-owned Rolls-Royce, and Unilever.

Global Presence and Strategic Goals

Based in Helsinki, Finland, Silo AI operates across Europe and North America. The acquisition aligns with AMD's strategy to deliver end-to-end AI solutions based on open standards. The transaction is expected to close in the second half of 2024.

Recent Acquisitions and Market Position

The purchase of Silo AI follows AMD's 2023 acquisitions of Mipsology and Nod.ai. In the competitive AI chip market, AMD goes up against Nvidia, Broadcom, and Marvell Technology.

Market Impact

In morning trades on the stock market today, AMD stock rose by 5.6% to $187.07.

Statements from Leadership

Peter Sarlin, CEO and co-founder of Silo AI, expressed enthusiasm about the acquisition, stating, "At Silo AI, our mission from the start has been to build an AI flagship company. Today's announcement is a logical next step in that pursuit as we join forces with AMD to shape the future of AI computing." Sarlin will continue to lead the Silo AI team as part of the AMD Artificial Intelligence Group.