In a move intended to strengthen AMD’s software capabilities, the company said on Tuesday that it intends to acquire an artificial intelligence firm known as Nod.ai. To catch up to its competitor, the chipmaker Nvidia (NVDA.O), sophisticated Micro Devices (AMD.O) intends to invest significantly in the essential software required for its sophisticated artificial intelligence processors. Nvidia has been working hard for more than a decade to build a significant edge in the artificial intelligence chip market through the software it creates and the community of software developers it supports.
AMD has committed to investing in and developing a cohesive collection of software to power the company’s many processors.
“We are executing to that strategy,” AMD President Victor Peng said in an interview with Reuters. “And doing it through internal investment as well as external acquisitions.”
The acquisition of Nod.ai is consistent with the approach since its technology makes it simpler for businesses to install artificial intelligence models optimized for AMD’s CPUs. Large data center operators are one of the types of clients that Nod.ai caters to when selling its technology.
AMD chose not to make the details of the transaction public. According to statistics from PitchBook, the artificial intelligence company Nod.ai, situated in Santa Clara, California, has raised around $36.5 million.
According to Peng, AMD established the artificial intelligence department earlier this year that would serve as a home for the Nod.ai purchase. About 1,500 engineers are employed by the division, with the vast majority working on software-related projects. AMD intends to continue to grow the team and will make an additional 300 recruits in 2019, followed by more hiring in 2024.
AMD’s senior vice president of the Artificial Intelligence Group, Vamsi Boppana, stated that the company has been experiencing significant expansion and plans to continue this trend next year.
Peng stated that the purchase of Nod.ai was the company’s second acquisition in the past few months. When asked if the business intended to strengthen its portfolio by adding other purchases, Peng responded, “We’re always looking.”
