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AMD to acquire AI software startup in effort to catch Nvidia


AMD Statement

On Tuesday, AMD announced its intentions to acquire an artificial intelligence startup,, marking a significant move to enhance its software capabilities. This strategic decision is driven by AMD’s determination to compete with its rival chipmaker, Nvidia, which has established a dominant position in the AI chip market through a decade of intensive work in developing software and fostering a robust software developer ecosystem. As AMD races to catch up with Nvidia’s prowess in AI chips, investing substantially in essential software components becomes a pivotal part of their strategy. This acquisition underscores AMD’s commitment to strengthening its position in the AI chip industry by expanding its software capabilities.

AMD is committed to a comprehensive software strategy that encompasses powering the various chips it manufactures. Victor Peng, AMD’s president, emphasized this commitment during an interview with Reuters. He noted that AMD is actively pursuing this strategy through a combination of internal investments and external acquisitions.

The acquisition of aligns seamlessly with AMD’s strategy as it offers technology that facilitates the deployment of AI models optimized for AMD’s chips. provides its technology to a range of customers, including large data center operators, making it a valuable addition to AMD’s portfolio of capabilities. This move reflects AMD’s dedication to making its chips more accessible and efficient for AI applications.

AMD created the AI group

The terms of the deal were not disclosed by AMD., based in Santa Clara, California, has secured approximately $36.5 million in funding, according to data from PitchBook.

Earlier in the year, AMD established the AI group that will incorporate the acquisition, as stated by Peng. This group currently consists of around 1,500 engineers, with the majority focusing on software-related roles. AMD has further plans to expand this team by hiring an additional 300 members in the current year, with intentions for further expansions in 2024.

Vamsi Boppana, Senior Vice President of the Artificial Intelligence Group at AMD, commented, “We have been growing rapidly, with plans for next year as well.”

According to Peng, the acquisition marks the company’s second acquisition in recent months. When questioned about potential future acquisitions to enhance the company’s portfolio, Peng responded, “We’re always looking.”

Advanced Micro Devices

AMD, which stands for Advanced Micro Devices, holds a significant position in the global semiconductor industry. Renowned for its groundbreaking computer processors and associated technologies, the company boasts a legacy of innovation and a reputation for high-performance computing solutions.

Established in 1969 and headquartered in Santa Clara, California, AMD has been at the forefront of technological advancements for decades. The company’s primary focus lies in the design and manufacture of critical components for various computing devices. These components include central processing units (CPUs), graphics processing units (GPUs), and accelerated processing units (APUs), all of which are vital for a broad spectrum of applications, from personal computers and laptops to gaming consoles and data centers.

One of AMD’s most notable achievements is its enduring rivalry with industry behemoth Intel in the CPU market. Throughout the years, AMD has cultivated a robust lineup of processors tailored for both consumer and enterprise use. Among these, the Ryzen and EPYC processors have garnered acclaim for their exceptional performance, energy efficiency, and competitive pricing.

In addition to CPUs, AMD has made significant strides in the realm of GPU technology. The Radeon series of graphics cards, offered by AMD, are highly regarded for their exceptional gaming and content creation capabilities. Consequently, AMD’s GPUs have become favored choices for both gamers and creative professionals.

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