Takeover of Canadian chipmaker Taalas will cost AMD up to 2.9 billion dollars, quarterly report shows
Almost half of the amount depends on conditions AMD does not explain; the company expects to complete the deal by the end of this year.
AMD values its planned acquisition of Canada's Taalas at about 2.9 billion dollars in cash and stock. That figure appears in the quarterly report the chipmaker published on 4 November, Securities.io reports. It includes up to about 1.4 billion dollars in contingent payments, with no explanation of what the conditions are. The takeover was announced on 6 August, but no amounts were given at the time.
Taalas, founded in 2023 and based in Toronto, designs chips in which AI models are baked directly into the hardware, BetaKit wrote at the time of the announcement. The company says it can deliver new chips in about two months, compared with the one to two years usual in the industry. Co-founder and chief executive Ljubisa Bajic previously led chip company Tenstorrent. Taalas raised 169 million dollars earlier this year.
According to Securities.io, AMD wants to combine the technology with its Instinct GPUs for running AI models and expects to close the deal by the end of 2026, subject to regulatory approval. In the third quarter AMD's data centre division posted revenue of 8.5 billion dollars, up 97 percent on a year earlier.