AMD has announced its intention to acquire the artificial intelligence startup Nod.ai, aiming to strengthen its software capabilities in a competitive race with Nvidia. AMD recognizes the significance of software in complementing its advanced AI chips, an area where Nvidia has gained a substantial advantage over the years.

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In line with its strategy, AMD plans to invest in building a unified software portfolio to support its diverse range of chips. The acquisition of Nod.ai aligns with this strategy, as its technology facilitates the deployment of AI models optimized for AMD's chips, particularly appealing to data center operators.

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To support its software-focused initiatives, AMD established an AI group earlier this year, housing the Nod.ai acquisition. This group currently comprises around 1,500 engineers, predominantly focused on software-related roles, and AMD intends to expand the team by hiring an additional 300 personnel in the current year, with further growth expected in 2024.

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