October 12, 2023 /SemiMedia/ -- AMD recently stated that it plans to acquire artificial intelligence (AI) startup Nod.ai as part of its efforts to enhance its software capabilities.

AMD plans to invest heavily in key software needed for the company's advanced artificial intelligence chips as it seeks to catch up with rival chipmaker Nvidia. AMD will invest in and build a unified set of software to support the various chips the company makes.

"We are executing on this strategy and achieving this through internal investments and external acquisitions," AMD President Victor Peng said in an interview.

Acquiring Nod.ai fits AMD's strategy as its technology enables the company to more easily deploy AI models tuned for AMD chips. Nod.ai sells its technology to large data center operators and other customers.

Victor Peng said that earlier this year, AMD created an AI division responsible for the acquisition of Nod.ai. The team employs about 1,500 engineers (the vast majority of which are software-related), and AMD plans to continue to grow the team, hiring an additional 300 engineers this year and adding more in 2024.