Advanced Micro Devices, Inc (NASDAQ:AMD) announced its plan to acquire Finnish AI start-up Silo AI for $665 million, marking one of the largest AI takeovers in Europe.

This acquisition aims to bolster AMD's AI services to compete with market leader Nvidia Corp (NASDAQ:NVDA).

The acquisition of Silo AI, expected to close in the second half of this year pending regulatory approval, will bring Silo's 300-member team into AMD's fold to build custom large language models (LLMs), the Financial Times reports.

Vamsi Boppana, senior vice president of AMD's AI group, emphasized that the deal will accelerate customer engagements and AMD's AI tech stack.

Silo AI, one of Europe's largest private AI labs, specializes in tailored AI models for enterprise customers. The Finnish company recently launched initiatives to develop LLMs in European languages like Swedish, Icelandic, and Danish, FT writes.

AMD's AI technology competes with Nvidia, whose success has pushed its valuation past $3 trillion this year.

Nvidia's proprietary software, Cuda, has significantly influenced its AI market leadership, allowing its chips to run a broader range of applications.

In contrast, Silo AI's commitment to open-source models provides a unique offering, distinguishing it from proprietary models by companies like OpenAI and Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google.

Under CEO Lisa Su, AMD has introduced the MI300 accelerators, promising $4 billion in revenue this year. However, Nvidia will likely generate over $100 billion from its data center chip business alone this year, Bloomberg reports.

Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF (NASDAQ:SMH) and iShares Semiconductor ETF (NASDAQ:SOXX).

Price Actions: At the last check on Thursday premarket, NVDA shares traded higher by 0.67% at $135.81. AMD is down 0.14% at $183.70.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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