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AMD buys Finnish startup Silo AI, goals to problem Nvidia’s dominance

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The large image: It could be arduous, if not not possible, for AMD to dislodge Nvidia from its dominant place within the AI chip market. Nevertheless, AMD can place itself as a robust various by constructing out its AI providers and ecosystem. That is the objective behind AMD’s $665 million acquisition of Silo AI, which has deep experience in massive language fashions.

AMD has signed a definitive agreement to accumulate Silo AI, the biggest non-public AI lab in Europe, for $665 million in money. The acquisition, anticipated to shut within the second half of 2024, is a part of AMD’s quest to construct out its AI providers to higher compete with market chief Nvidia. The Finnish startup could possibly be a potent device for AMD, because it has expertise in scaling massive language fashions on one of many world’s strongest supercomputers, LUMI, which makes use of AMD {hardware}.

“Silo AI’s staff of trusted AI specialists and confirmed expertise growing management AI fashions and options, together with state-of-the-art LLMs constructed on AMD platforms, will additional speed up our AI technique and advance the build-out and fast implementation of AI options for our world prospects,” stated Vamsi Boppana, senior vp of the Synthetic Intelligence Group at AMD.

Silo AI has been a pioneer in scaling massive language mannequin coaching on LUMI, Europe’s quickest supercomputer powered by over 12,000 AMD Intuition MI250X GPUs, in accordance with Dr. Pekka Manninen, sirector of science and expertise at CSC-IT Heart for Science, Finland. “Along with college collaborators, they’ve skilled state-of-the-art open-source fashions for EU languages, such because the Nordic Poro and Viking fashions.”

Silo AI brings over 300 AI specialists to AMD, together with greater than 125 AI scientists with doctorate levels – an inflow of expertise that can considerably enhance AMD’s AI improvement capabilities. Silo AI’s expertise in constructing AI on AMD platforms will even strengthen the chipmaker’s software program development efforts, probably enhancing the ecosystem round AMD’s AI chips to higher compete with Nvidia’s dominant CUDA community.

These efforts have gained some traction already, with AMD’s open-source ROCm instruments having generated a modest following alongside the introduction of new hardware similar to its Intuition MI300 sequence datacenter GPUs.

AMD has made different investments in its ecosystem capabilities previously yr, buying corporations like Mipsology and Nod.ai. For instance, Mipsology’s staff helps AMD compete extra successfully within the AI inference market, a key battleground in opposition to Nvidia.

All advised, AMD has invested over $125 million throughout a dozen AI corporations within the final 12 months. Nevertheless, lots of these offers had been small, tactical acquisitions, dwarfed by the sum AMD is spending on Silo. The truth is, the acquisition is the largest of a privately held AI startup in Europe since Google acquired UK-based DeepMind in 2014.

Whereas the acquisition is a big step for AMD, it can’t be ignored that Nvidia holds a dominant market share within the AI chip market. Conscious of this, AMD’s technique is to place itself as a viable various to Nvidia, concentrating on companies that don’t wish to depend on a single vendor.

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