Santa Clara, CA – July 10, 2024 – AMD (NASDAQ: AMD) announced it has entered into a definitive agreement to acquire Silo AI, Europe’s largest private AI lab, in an all-cash transaction valued at approximately $665 million. This acquisition marks a significant step in AMD's strategic commitment to providing end-to-end AI solutions based on open standards and strong partnerships within the global AI ecosystem.
Founded in 2017 and headquartered in Helsinki, Finland, Silo AI boasts a team of world-class AI scientists and engineers. The company specializes in developing custom AI models, platforms, and solutions for leading enterprises in the cloud, embedded, and edge computing markets. Its esteemed clientele includes Allianz, Philips, Rolls-Royce, and Unilever.
Silo AI's CEO and Co-Founder, Peter Sarlin, will continue to lead the Silo AI team as part of AMD’s AI group, reporting to Senior Vice President Vamsi Boppana. The acquisition is expected to close in the second half of 2024.
“Enterprises across every industry are seeking rapid and efficient ways to develop and deploy AI solutions to meet their unique business needs,” said Vamsi Boppana, Senior Vice President of AMD’s AI Division. “Silo AI's trusted team of experts and their extensive experience in creating cutting-edge AI models and solutions, including the most advanced LLMs built on AMD platforms, will further accelerate our AI strategy. This acquisition will drive the construction and rapid implementation of AI solutions for our global customers.”
Silo AI provides comprehensive AI-driven solutions that help clients seamlessly integrate AI into their products, services, and operations. Its product portfolio includes SiloGen, an advanced model platform, and state-of-the-art open-source multilingual LLMs such as Poro and Viking, built on AMD platforms.
“At Silo AI, our mission from the beginning has been to create an AI flagship company. Today's announcement is the logical next step in this pursuit as we join forces with AMD to shape the future of AI computing,” said Peter Sarlin, CEO and Co-Founder of Silo AI. “We have a long history of building successful AI products and delivering value to our clients. We look forward to expanding our impact as part of AMD, developing enterprise solutions and AI models to tackle the most complex challenges of large-scale AI deployment.”
The acquisition of Silo AI is the latest in a series of strategic AI investments by AMD over the past year, which also included the acquisitions of Mipsology and Nod.ai in 2023. AMD has invested over $125 million in more than a dozen AI startups to support its AI strategy and enhance its computing platform leadership.
Nishant Batra, Chief Strategy and Technology Officer at Nokia, commented, “As a leading European AI company, Silo AI has been our long-term partner in numerous AI-related projects. We are excited about the combination of AI technology with AMD's innovative computing solutions, which will deliver more powerful capabilities.”
Pekka Manninen, Director of Science and Technology at CSC-IT Center for Science, stated, “Silo AI has been a pioneer in large-scale language model training on LUMI, Europe’s fastest supercomputer powered by over 12,000 AMD Instinct MI250X GPUs. We have collaborated extensively with their team to optimize the software layer, enabling efficient AI model training on LUMI.”
Mats Agervi, CEO of Combient, added, “Combient partnered with Silo AI, a leading AI lab with 300 AI scientists and engineers, to accelerate digital and AI applications for the largest Nordic companies. Today's acquisition highlights Silo AI's capabilities and opens more opportunities to create value in Europe and beyond.”
This acquisition not only enhances AMD's technical capabilities in the field of AI, but will also boost its competitiveness in the global market. With the continuous development of AI technology, AMD will occupy a more advantageous position in the field of AI computing and solutions through this acquisition and other investments, further narrowing the gap with competitors and meeting the growing needs of customers.
Affected by this news, AMD's stock rose by more than 3 points! The market has added more than $1 billion, which has completely exceeded the acquisition amount. It can be seen that this acquisition is favored by the industry.
