Advanced Micro Devices (NASDAQ:AMD) announced on Wednesday that it will acquire Finnish artificial intelligence startup Silo AI for approximately $665 million in cash.

The move aims to bolster AMD's capabilities in AI chip technology, positioning it to better compete with industry leader Nvidia.

Silo AI specializes in building and training large language models, a task that presents significant challenges even for major tech companies.

Through this acquisition, AMD intends to enhance the development and deployment of AI models powered by its chips, assisting customers in creating complex AI models.

Additionally, Silo AI will augment AMD’s software development capabilities.

Although the acquisition is not expected to impact AMD's immediate financial performance, AMD Senior Vice President of AI, Vamsi Boppana, emphasized in an interview that it "unlocks a significant amount of business moving forward."