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Advanced Micro Devices Inc. (NASDAQ: NASDAQ:AMD) completed its acquisition of Silo AI, Europe's largest private artificial intelligence laboratory, in a deal worth approximately $665 million. The transaction, which was finalized today, aims to bolster AMD's AI capabilities and expand its reach in the global AI ecosystem through open standards partnerships.
Silo AI, known for its high-level AI expertise, has a notable track record of developing advanced AI models, platforms, and solutions for major enterprise clients such as Allianz (ETR:ALVG), Philips, Rolls-Royce (OTC:RYCEY), and Unilever (LON:ULVR). The company has also created open-source multilingual Large Language Models (LLMs), including Poro and Viking, which operate on AMD platforms.
The Silo AI team will be integrated into the AMD Artificial Intelligence Group (AIG (NYSE:AIG)), under the leadership of AMD Senior Vice President Vamsi Boppana. "AI is our number one strategic priority, and we continue to invest in both the talent and software capabilities to support our growing customer deployments and roadmaps," stated Boppana.
He emphasized that Silo AI's expertise in training language models at scale on AMD Instinct accelerators and their experience in AI model development and integration will enhance customer experiences on AMD platforms.
AMD, with over 50 years in the industry, is known for its high-performance computing, graphics, and visualization technologies. The acquisition of Silo AI is expected to contribute to AMD's portfolio of high-performance and adaptive products.
InvestingPro Insights
As Advanced Micro Devices (AMD) continues to expand its presence in the AI space with the acquisition of Silo AI, it's worth looking at some key metrics and insights that could be of interest to investors tracking the company's performance.
InvestingPro Data shows that AMD has a market capitalization of $217.31 billion, reflecting its significant presence in the semiconductor industry. The company's Price/Earnings (P/E) ratio stands at 161.05, which, while high, could be indicative of the market's growth expectations from AMD, especially considering its strategic moves like the recent acquisition.
AMD's revenue growth over the last twelve months as of Q2 2024 is reported at 6.4%, demonstrating a steady increase that might be further impacted by the integration of Silo AI's technologies and expertise. The gross profit margin in the same period is a robust 51.42%, suggesting that AMD is maintaining profitability despite the costs associated with its expansion efforts.
Among the InvestingPro Tips, it's noted that AMD is expected to see net income growth this year, which could be a positive sign for investors looking at the company's future earnings potential. However, it's also important to consider that 27 analysts have revised their earnings downwards for the upcoming period, which could signal a more cautious outlook in the short term.
Investors interested in a deeper dive into AMD's performance and future prospects can find additional InvestingPro Tips by visiting https://www.investing.com/pro/AMD. With a total of 16 tips available, including insights on the company's valuation multiples and stock price volatility, InvestingPro offers a comprehensive analysis that could help in making more informed investment decisions.
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