AMD acquires AI chip startup Taalas to hardwire models into silicon

Published Aug 6, 09:42 PM UTC

Advanced Micro Devices (AMD) has agreed to acquire Taalas, a Toronto-based startup that makes specialized inference chips hard-wired for single AI models. Taalas' technology promises significantly faster and cheaper output for specific models compared to general-purpose GPUs, though it sacrifices flexibility. The deal comes seven months after Nvidia spent $20 billion buying assets from Groq, a similar AI chip designer. Taalas' current chip runs a small version of Meta's Llama 3.1 model, and the company is developing chips for larger models. AMD plans to integrate Taalas chips into its product road map, including its Helios rack-scale systems, as part of a broader strategy to offer integrated AI systems beyond just GPUs. AMD CEO Lisa Su emphasized that while GPUs will remain dominant, specialized chips are important for low-latency applications. Taalas has raised $219 million in venture funding since its founding in 2023.