The move aims to enhance AMD's AI chip capabilities and compete with industry leader Nvidia.

Building and training large language models pose challenges, even for major tech companies.

By acquiring Silo AI, AMD aims to improve the development and deployment of AI models powered by AMD chips. This strategic move will assist potential customers in constructing complex AI models using the company's technology.

AMD's Senior Vice President Vamsi Boppana said AI will also bolster AMD's software development capabilities. Although the deal won't directly impact AMD's financial performance, it represents a significant opportunity for future business growth.

Helsinki-based Silo AI specialises in end-to-end AI-driven solutions, helping clients seamlessly integrate technology into their products and services. Operating across Europe and North America, Silo AI serves companies such as Philips, Rolls-Royce, and Unilever.

Silo AI's CEO and co-founder Peter Sarlin will continue to lead the unit as part of AMD's Artificial Intelligence Group. The acquisition is set to conclude in the second half of 2024.

This move is part of AMD's ongoing efforts to expand its presence in the AI landscape. In the past year, AMD acquired AI software firms Mipsology and Nod.ai, investing over $125 million in various AI companies.