Chipmaker Advanced Micro Devices on Wednesday announced a definitive agreement to acquire Silo AI, the largest private artificial intelligence lab in Europe, in an all-cash transaction valued at $665 million. AMD stock rose on the news.
Santa Clara, Calif.-based AMD said the deal will expand its enterprise AI solutions globally. Silo AI has developed tailored AI models, platforms and solutions for leading enterprises spanning cloud, embedded and endpoint computing markets, AMD said in a news release. Its customers include Allianz, Philips, BMW-owned Rolls-Royce and Unilever.
Silo AI is based in Helsinki, Finland, and has operations across Europe and North America.
Additionally, the acquisition is part of AMD's strategy to deliver end-to-end AI solutions based on open standards, the company said. The parties expect the transaction to close in the second half of 2024.
The Silo AI purchase follows AMD's 2023 acquisitions of Mipsology and Nod.ai.
In the AI chip market, AMD competes with Nvidia and custom chip designers Broadcom and Marvell Technology.
AMD Stock Rises On Deal News
On the stock market today, AMD stock rose 3.9% to close at 183.96.
"At Silo AI, our mission from the start has been to build an AI flagship company," Peter Sarlin, CEO and co-founder of Silo AI, said in a statement. "Today's announcement is a logical next step in that pursuit as we join forces with AMD to shape the future of AI computing."
Meanwhile, Sarlin will continue to lead the Silo AI team as part of the AMD Artificial Intelligence Group.
AMD stock is on two IBD lists: Leaderboard and Tech Leaders.
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