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AMD to Snap Up Startup Nod.ai in Race Against Nvidia

 |  October 10, 2023

Advanced Micro Devices (AMD) announced on Tuesday its plans to acquire artificial intelligence startup Nod.ai, signaling a strategic move to enhance its software capabilities. This acquisition is a significant step in AMD’s pursuit to compete with rival chipmaker Nvidia, particularly in the realm of advanced AI chips.

Nvidia has established a dominant position in the AI chip market over the past decade, largely owing to its robust software offerings and a thriving developer ecosystem. Recognizing the crucial role of software in the success of AI chips, AMD has committed a substantial investment to building a comprehensive suite of software solutions to support its diverse chip offerings.

AMD’s President, Victor Peng, emphasized the company’s dedication to this strategy, stating in an interview with Reuters, “We are executing to that strategy and doing it through internal investment as well as external acquisitions.”

Related: Nvidia Considers Investing in Arm’s IPO

The acquisition of Nod.ai aligns with AMD’s strategy, as Nod.ai’s technology facilitates the deployment of AI models optimized for AMD’s chips, simplifying the integration process. Nod.ai primarily caters to large data center operators and other customers in need of AI solutions.

While the specific financial details of the deal were not disclosed by AMD, Nod.ai, headquartered in Santa Clara, California, had previously raised approximately $36.5 million, according to PitchBook data.

Earlier this year, AMD established an AI group to house the forthcoming Nod.ai acquisition. This group currently consists of around 1,500 engineers, predominantly focused on software development. AMD plans to further bolster this team by adding 300 new hires in the current year, with more expansions slated for 2024. This strategic move underscores AMD’s commitment to bridging the software gap in the competitive AI chip market and ensuring a strong footing against its rivals, particularly Nvidia.

Source: Reuters