AI hardware is taking off and it is not going to slow down, mainly because the demand for it does not stop growing, there is a market to spare and everyone wants to position themselves with the largest possible share. For this reason, and being the first, a few months ago NVIDIA launched into buying strategic companies for the sector, and now
AMD follows suit and completes the purchase of Silo AI, a key value so far in Europe
what ends up in the hands of the Americans.
While Intel doesn’t want to hear anything about spending, purchases or investments and is retreating to levels never seen before, not even during the pandemic, its biggest rival in the general market is taking out its checkbook and wants more. An example of how both companies are approaching a complicated financial situation worldwide in the midst of a decline in sales in the rest of the sectors that until now brought them succulent income.
AMD buys Silo AI and goes all-in on AI at a time of contraction in the general hardware market
We saw it yesterday with the data from MindFactoryand exactly the same thing is happening worldwide, because wherever you look, Hardware sales are plummetingmanufacturers are nervous and their partners are about to press the red panic button after huge investments just a few years ago.
With all this, the AI market is the most lucrative right now, the one that is pulling the cart, and therefore, if NVIDIA goes from purchase to purchase, AMD was not going to be less and announces that
complete the purchase on Silo AIleaving Europe without one of its greatest assets to date. It should be noted that Silo AI was until now the largest private Artificial Intelligence laboratory on our continent.
The purchase, moreover, was not really expensive: “only” 665 million dollarsso AMD is not really going to pay too much for an asset that Europe does not seem to have wanted to defend at a key moment in history such as the rise of AI companies and laboratories worldwide.
Silo AI will be incorporated into Lisa Su’s AIG group
As expected, the laboratory will be included in the so-called Artificial Intelligence Groupmore commonly known as AIGwhich directs
Vamsi BoppanaAs AMD itself has confirmed, the acquisition of Silo AI is of fundamental strategic value, because the team of AI scientists and engineers is top-notch and can develop cutting-edge models and platforms.
In fact, the now part of the AIG group has worked with industry giants such as Allianz, Unilever, Rolls-Royce o
Philipsimplementing models to improve productivity, innovation and others. Vamsi Boppana comments the following:
“Artificial Intelligence is our number one strategic priority and we continue to invest in both talent and software capabilities to support our customers’ growing deployments and roadmaps.
The Silo AI team has developed state-of-the-art language models that have been trained at scale on AMD Instinct accelerators and has extensive experience developing and integrating AI models to solve critical problems for end customers. We expect their software expertise and capabilities to directly improve the customer experience when delivering “best AI solutions on AMD platforms.”
If anyone thinks that the gaming, PC or laptop market is a priority for any of the big three, they better get it out of their head, the only thing that matters now is AI and the attached business market that buys and demands increasingly powerful, complex hardware and software and also, it doesn’t care that it is somewhat more expensive with each generation. Is this another bubble like the one we experienced with crypto mining? Given the investments of NVIDIA and AMD, it seems not.
