Advanced Micro devices (AMD) announced on Wednesday that it has acquired Finnish artificial intelligence startup Silo AI in a deal of $665 million. They signed the deal in order to enhance its AI chip capabilities to compete against industry leader Nvidia.

Building and training large language models is challenging, even for big tech companies. So, this acquiring deal will help AMD to enhance the development and deployment of AMD-powered AI models and help potential customers build complex AI models with the company's chips. Silo AI will also help AMD's software development capabilities.

AMD Senior Vice President of AI, Vamsi Boppana, said in an interview that, “The deal will not impact AMD's financial performance, it unlocks a significant amount of business moving forward."

Finland-based Silo AI focuses on delivering end-to-end AI-driven solutions that assist customers in integrating technology into their products and services. With a presence in both Europe and North America, the startup serves clients such as Philips, Rolls-Royce, and Unilever.

Through a span of more than 50 years AMD has driven innovation in high-performance computing, graphics and visualization technologies.

AMD said Silo AI's CEO and co-founder Peter Sarlin will continue to lead the unit as part of the AMD Artificial Intelligence Group,The deal is expected to close in the second half of 2024.

The company informed that the acquisition deal marks the latest step from AMD in a series of steps aiming to lead the unit as part of the AMD Artificial Intelligence Group. During the last year the company acquired AI software firms Mipsology and Nod.ai and has invested more than $125 million across a dozen AI companies over the last 12 months.