U.S. chipmaker Advanced Micro Devices (AMD) will acquire Finland-based artificial intelligence startup Silo AI for $665 million, the company announced on Wednesday. The all-cash deal is said to be the largest of any privately owned AI company in Europe in a decade.
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Silo AI CEO Peter Sarlin will continue to lead Silo’s team of 300 staff members as part of the AMD Artificial Intelligence Group, the company said. The deal is expected to close later this year, subject to regulatory approval.
As a next step on our journey, Silo AI is excited to announce that we’ve joined forces with @AMD. Silo AI and AMD have an aligned mission to create a global leader that will shape the future of computing. Please find below a link to the press release.https://t.co/WuGOGEzwUY pic.twitter.com/vKfezJnWjQ
— Silo AI (@silo_AI) July 10, 2024
Silo AI to build custom LLMs for AMD
Silo AI will use its software tools to build custom large language models (LLMs) – the tech that underpins ChatGPT – for AMD, the Financial Times reported. Vamsi Boppana, senior VP of AMD’s artificial intelligence group, said the deal will help AMD improve the building and sale of AMD-powered AI models.
“Silo’s team of AI experts…will further accelerate our AI strategy and advance the build-out and rapid implementation of AI solutions for our global customers,” Boppana said in a statement.
The acquisition is the largest such takeover of an AI company in Europe since Google bought DeepMind for £400 million in 2014, FT reported, citing data from Dealroom. It comes as the AI race heats up, with AMD keen to expand its AI product offerings to compete with Nvidia.
AMD’s AI focus deepens
Silo AI is the latest in a series of acquisitions by AMD. Over the past 12 years, the company spent $125 million “across a dozen AI companies” and also bought Mipsology and Nod.ai “to expand the AMD AI ecosystem,” it says.
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Helsinki-based Silo AI specializes in end-to-end AI-driven solutions that help customers integrate AI into their products, services, and operations. The Finnish company has operations in Europe and North America and counts Allianz, Philips, Rolls-Royce, and Unilever as its customers.
Silo AI also creates advanced open-source LLMs, like Poro and Viking, in many European languages. The models are built using AMD’s technology and Silo AI’s proprietary platforms. Silo CEO Sarlin said the transaction is a “logical next step” in their goal of becoming “a flagship AI company.”
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