Advanced Micro Devices (AMD) announced on Wednesday that it plans to buy a Finnish artificial intelligence startup called Silo AI for approximately $665 million in cash. This move is part of AMD’s strategy to boost its capabilities in AI chips and compete better with Nvidia, a leader in the industry.

Silo AI, based in Helsinki, Finland, specializes in creating AI solutions that help companies integrate artificial intelligence into their products and services. The startup has clients like Philips, Rolls-Royce, and Unilever across Europe and North America.

By acquiring Silo AI, AMD aims to improve how it develops and deploys AI models powered by AMD chips. This acquisition also enhances AMD’s software development abilities in the AI field.

Peter Sarlin, CEO and co-founder of Silo AI, will continue to lead the team under AMD’s Artificial Intelligence Group. The deal is expected to be finalized in the second half of 2024.

This acquisition is part of AMD’s broader efforts to expand its presence in the AI market. In the past year, AMD has acquired other AI software companies and invested over $125 million in various AI ventures.