AMD is buying an AI software startup Nod.AI

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on Oct 10, 2023
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  • AMD did not reveal what it's spending on buying Nod.AI or Nod Labs.
  • Nod.AI will help expand the multinational's footprint in AI software.
  • AMD stock is currently down 15% versus its year-to-date high.

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Advanced Micro Devices Inc (NASDAQ: AMD) is trending up at writing after announcing plans of buying Nod.AI.

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Why is AMD buying Nod.AI?

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The semiconductor behemoth is convinced that the said acquisition will expand its footprint in artificial intelligence.

It did not, however, reveal the financial terms of the agreement on Tuesday. Vamsi Boppana – the Senior Vice President of AMD said in a press release today:

The acquisition is expected to significantly enhance our ability to provide AI customers with open software that allows them to easily deploy highly performant AI models turned for AMD hardware.

The stock market news arrives about a month before Advanced Micro Devices is scheduled to report its Q3 financial results. Consensus is for it earn 49 cents a share this quarter versus 54 cents per share a year ago. AMD shares are currently down 15% versus their year-to-date high.

AMD has been making AI acquisitions

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Advanced Micro Devices had also bought Mipsology – an AI software startup based out of Palaiseau, France in August.

The multinational has been committed to making acquisition this year to expand its footprint in artificial intelligence and compete better with its bigger rival Nvidia Corp whose revenue more than doubled in the latest reported quarter.

Buying Nod.AI will further strengthen its software capabilities as the startup focuses primarily on reinforcement learning. Anush Elangovan – its Chief Executive has previously worked at Google and Cisco.

In June, AMD said the AI accelerator market could be worth more than $150 billion in 2027 as it unveiled the new MI300X advanced GPU (read more).

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