Advanced Micro Devices (AMD) saw its shares surge by nearly 4% on Wednesday following the announcement of its acquisition of Silo AI, the largest private artificial intelligence (AI) lab in Europe. The chipmaker is paying $665 million in cash for Silo AI, marking a significant move to expand its footprint in the competitive AI market.
This acquisition aligns with AMD’s broader strategy to enhance its AI capabilities through strategic investments and acquisitions. Over the past year, AMD has invested $125 million in twelve AI-focused companies and acquired Mipsology and Nod.AI.
Silo AI, known for its expertise in developing customized AI models and solutions across cloud, embedded, and endpoint computing markets, will integrate into AMD’s Artificial Intelligence Group. Peter Sarlin, co-founder and CEO of Silo AI, will continue to lead the team under AMD’s leadership.
Vamsi Boppana, Senior Vice President of AMD’s Artificial Intelligence Group, highlighted the acquisition’s significance, stating that it will accelerate AMD’s AI strategy and enable rapid deployment of AI solutions for global customers.
The transaction, subject to regulatory approvals, is expected to close by the end of the year. AMD’s stock closed at $183.96, reflecting a 3.9% increase, and has appreciated by nearly 25% since the beginning of 2024, underscoring investor optimism following this strategic acquisition.
