AMD looking to acquire AI software start-up in bid to catch Nvidia

AMD has plans in place to acquire an artificial intelligence start-up called Nod.ai as part of an effort to bolster its software capabilities.

While trying catch rival chip-maker Nvidia, AMD plans to invest heavily in the critical software necessary for the company’s advanced AI chips. Nvidia has built a powerful advantage in the AI chip market through the software it makes, and the software developer ecosystem with more than a decade of work.

The company has made it a point to invest in and build a unified collection of software to power the various chips the company makes.

In an interview, AMD president Victor Peng said they are executing to that strategy and “and [we are] doing it through internal investment as well as external acquisitions.”

This acquisition in line with the strategy because its technology enables companies to deploy AI models that are tuned for AMD’s chips more easily. Nod.ai sells its technology to large data centre operators, among other customers.

AMD has not yet disclosed what the terms of the deal entail. According to PitchBook data, the Santa Clara, California-based Nod.ai has raised roughly US$36.5-million.