Here’s How AMD Plans To Compete Against Nvidia In The AI War

— (Reuters) As part of its endeavor to improve its software skills, AMD said on Tuesday that it intends to acquire the artificial intelligence firm Nod.ai.

Advanced Micro Devices intends to make significant investments in the crucial software required for the company’s cutting-edge AI processors in its effort to catch rival chipmaker Nvidia. Through its software and the community of software developers, Nvidia has developed a significant competitive edge in the market for AI chips over the course of more than a decade of effort.

To power the numerous CPUs that the firm produces, AMD has committed to establish and invest in a uniform suite of software.

In an interview with Reuters, AMD president Victor Peng said, “We are executing to that strategy.” “And doing it through internal investment as well as external acquisitions.”

The purchase of Nod.ai fits into the plan because of how readily businesses can utilize its technology to deploy AI models that are optimized for AMD’s processors. Among other clients, Nod.ai offers its technology to big data center operators.

The deal’s conditions were kept a secret by AMD. According to information from PitchBook, the Santa Clara, California-based Nod.ai has raised around $36.5 million.

According to Peng, AMD established the AI division earlier this year, which will house the Nod.ai purchase. About 1,500 engineers work for the division, the great majority of them are involved in software, and AMD expects to keep growing the team by adding 300 new employees this year and more in 2024.

Vamsi Boppana, senior vice president of AMD’s artificial intelligence group, said the company has been expanding quickly and has ambitions for the next year.

According to Peng, this is the company’s second purchase in recent months. When asked whether the business intended to expand its purchases portfolio, Peng said, “We’re always looking.”