AMD announced on Thursday that it has reached an agreement to acquire Taalas, a Toronto-based startup. Taalas specializes in custom or hardwired accelerator chips for specific AI models, rather than general-purpose chips, and its technology is expected to provide lower-cost and thousands of times faster outputs for specific models. The acquisition aims to integrate Taalas' chips and technology into AMD's product roadmap, including its CPU and Instinct GPU systems, to address the demand for diverse chip solutions in the generative AI field. Previously, NVIDIA also acquired the assets of AI chip design company Groq for $20 billion.