AMD Acquires to Strengthen AI Software Capabilities

In a strategic move to amplify its position in the artificial intelligence (AI) domain, AMD announced on Tuesday that it would be acquiring the AI startup This acquisition will play a pivotal role in AMD’s plan to enhance its software capabilities and give tougher competition to its primary rival, Nvidia.

Strengthening Software Capabilities

  • Advanced Micro Devices (AMD) aims to create a unified collection of software that will power its various chips.
  • AMD’s president, Victor Peng, emphasizes that this move is in line with their strategy. He mentioned, “We are executing that strategy,” and indicated that they will achieve this through both internal investment and external acquisitions.
  • The acquisition will help enterprises deploy AI models that are perfectly optimized for AMD’s hardware. The New Addition, formerly known as Nod Labs, is an open-source AI software startup, primarily specializing in reinforcement learning – a system that “learns” through trial and error. This acquisition will significantly enhance AMD’s AI software operations.

  • The California-based startup,, had successfully raised around $36.5 million, as per data from PitchBook.
  •’s expertise will potentially allow AMD to provide open software to AI customers, enabling them to deploy high-performance AI models tuned specifically for AMD hardware.
  • The startup’s CEO, Anush Elangovan, previously played a key role in Google’s first Chromebooks team and was also a lead engineer at Cisco.
  • Harsh Menon, Nod’s co-founder, and CTO, was formerly associated with Kitty Hawk, an electric aircraft company.’s Evolution

Originally envisioned as an AI hardware firm, Nod Labs initially focused on motion-tracking wearables and gesture recognition. Examples of such products include Bluetooth-connected rings designed for gaming. Over the years, with significant investments from venture capital giants like Menlo Ventures and Sequoia Capital, the firm evolved its product range and capabilities. Their team includes professionals from industry giants such as Apple, Google, and Samsung.

Rivalry with Nvidia

The tech landscape witnesses a persistent rivalry between AMD and Nvidia, especially in the AI segment. Nvidia currently holds a considerable advantage in the AI chip market, primarily due to its extensive software ecosystem.

  • For the quarter ending July 30, 2023, Nvidia witnessed a whopping revenue increase of over 100% YoY. Meanwhile, AMD saw a decline of 18% but still surpassed analysts’ predictions.
  • AMD’s acquisition of is a testament to its commitment to narrowing this gap and poses a potential challenge to Nvidia in the coming years.’s Role in AMD’s Growth Strategy is renowned for its “SHARK” – a high-performance machine learning distribution system. This automated software eliminates manual optimizations, ensuring rapid deployment of AI models. Such technology is expected to complement and enhance AMD’s product lineup, including AMD CDNA, XDNA, RDNA, and “Zen” architectures. The addition of will pave the way for AMD’s AI software resources development, enabling the company to potentially challenge Nvidia’s CUDA. Vamsi Boppana, AMD’s SVP AI, stated that this integration would propel the open-source compiler technology, ensuring portable and high-performance AI solutions across AMD’s product range.

Future Outlook

With this acquisition, AMD’s foothold in the AI domain is expected to grow substantially. Their recent initiative of creating an AI group and the inclusion of 1,500 engineers (primarily software-related) underlines this commitment. AMD’s plan to further expand this team with 300 more recruits in 2023 and even more in 2024 hints at a promising future.

  • The deal is set to close within this quarter, according to AMD.
  • The exact financial details are yet to be unveiled.

For more in-depth details on AMD’s acquisition strategy and its position in the AI market, visit Reuters.


AMD’s decision to acquire marks a significant turn in the AI chip landscape. With both companies pooling their resources and expertise, the tech world may witness a more competitive environment in AI software capabilities in the years to come, especially when considering the rapid advancements and growing demands in the AI sector.