AMD Acquires Nod.ai for Undisclosed Amount to Accelerate Its Optimized AI Solutions
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AMD Acquires Nod.ai for Undisclosed Amount to Accelerate Its Optimized AI Solutions
Advanced Micro Devices Inc (NASDAQ: AMD) shares closed Tuesday trading at $109.01, up 1.91 percent from the day’s opening price, with the gains extending in the after-hours trading session. The AMD shares uptick on Tuesday was attributed to the Nod.ai acquisition for an undisclosed amount in a bid to enhance its artificial intelligence capabilities.
According to the announcement, the acquisition of Nod.ai will entail its team members joining AMD to further develop AI solutions amid heightened demand. Moreover, AMD intends to play catchup with Nvidia Corp (NASDAQ: NVDA) which has scaled to a $1.2 trillion valued tech company in the past year.
Why the Nod.ai Acquisition by AMD Matters
According to Vamsi Boppana, the company’s senior vice president of the artificial intelligence group, the acquisition of Nod.ai will significantly enable its customers to easily tap into high-performance AI models that are interoperable with AMD hardware products.
“The addition of the talented Nod.ai team accelerates our ability to advance open-source compiler technology and enable portable, high-performance AI solutions across the AMD product portfolio. Nod.ai’s technologies are already widely deployed in the cloud, at the edge, and across a broad range of endpoint devices today,” Boppana noted.
Similar sentiments were expressed by the Nod.ai team of engineers that has focused on developing AI solutions with notable backing from crucial investors including 8Square Capital, Atlantic Bridge, Pointguard Ventures, and Walden International.
“Our journey as a company has cemented our role as the primary maintainer and major contributor to some of the world’s most important AI repositories, including SHARK, Torch-MLIR, and OpenXLA/IREE code generation technology. By joining forces with AMD, we will bring this expertise to a broader range of customers on a global scale,” Anush Elangovan, co-founder and CEO of Nod.ai, noted.
Market Outlook
During the fiscal second-quarter earnings that were released in early August, AMD said that it is increasing its research and development in the AI sector to widen its revenue collection base. Moreover, the company expects AI to be a significant PC demand driver as large software companies incorporate generative AI into their offerings. During the quarter, AMD announced that its clients’ sales dropped by about 54 percent YoY to $998 million. However, the acquisition of Nod.ai is expected to stir things up in the coming quarters.
Notably, AMD recently introduced the MI300X chip to incorporate new AI models like ChatGPT from OpenAI. Additionally, the company’s chips are also included in the latest gaming console like the Sony PlayStation 5. Nonetheless, the overall sales in the gaming division dropped by about 4 percent during the fiscal second quarter to $1.6 billion on an annualized basis. Overall, the company’s revenue dropped by about 18 percent YoY to $5.36 billion, hence the need to diversify its portfolio.
AMD Acquires Nod.ai for Undisclosed Amount to Accelerate Its Optimized AI Solutions