Advanced Micro Devices (AMD) has made a significant move in the AI sector by acquiring Silo AI, a company known for developing advanced language models optimized for AMD Instinct accelerators.

This acquisition, valued at $665 million, marks AMD's strategic pivot towards prioritizing AI and AI-related technologies, aligning with trends observed in other major tech companies.

The integration of Silo AI's team into AMD's Artificial Intelligence Group (AIG) aims to enhance the development and deployment of AI models on AMD hardware, strengthening partnerships within the global AI ecosystem.

Silo AI's experienced team has a proven track record of creating advanced AI models for major clients, including Allianz, Philips, Rolls-Royce, and Unilever, ensuring continued collaboration with AMD's technologies.

This acquisition follows AMD's announcement in October 2023 to acquire Nod.ai, further indicating its commitment to expanding AI capabilities across its product offerings.

AMD is gaining attention as it competes for market share in high-performance computing, particularly in the AI sector, where investor interest remains robust.

In its recent Q2 earnings report, AMD showcased strong performance with over $1 billion in sales of MI300 chips and a 115% year-over-year growth in data center revenue.

AMD's stock has surged over 65% since 2021, currently valued around $130, with expectations of reaching $163, indicating strong market confidence.

Despite underperforming Nvidia and other chip makers in total return this year, AMD is anticipated to gain market share over time, particularly with its MI300 chips.

The company's high valuation is supported by strong sales in CPUs and advancements in AI chip technology, solidifying its position as a formidable competitor in the semiconductor market.

Vamsi Boppana, AMD's senior vice president, emphasized that AI is the company's number one strategic priority, highlighting ongoing investments in talent and software capabilities.

The article includes cautionary statements regarding forward-looking statements and the risks associated with AMD's future operations and market conditions.