AMD plans to pay $665 million to purchase Silo AI in order to bolster its position in the AI competition

In an effort to better compete with Nvidia, the market leader in artificial intelligence chips, Advanced Micro Devices (AMD) said on Wednesday that it would purchase Finnish firm Silo AI for around $665 million in cash.

Even for major tech organizations, developing and training huge language models is a difficult task.

According to the chipmaker, the purchase of Silo AI would enhance the creation and use of AI models powered by AMD and assist potential clients in creating intricate models using the company’s processors.

Additionally, AMD’s software development skills will be strengthened by Silo AI.

While the deal will not affect AMD’s financial performance, it «unlocks a significant amount of business going forward,» AMD’s senior vice president of AI, Vamsi Boppana, said in an interview.