U.S. tech giant AMD to buy Toronto AI chip startup Taalas for US$2.9 billion
The cash-and-stock deal is one of the largest acquisitions in Canadian technology history.
TORONTO · U.S. semiconductor company Advanced Micro Devices Inc. announced it will pay about US$2.9 billion to acquire Toronto-based AI chip startup Taalas Inc. The cash-and-stock transaction is one of the largest known acquisitions of a Canadian technology company. AMD disclosed the price in a securities filing this week, noting that US$1.4 billion of the purchase amount is dependent on unspecified conditions. The deal, which was announced in August, has yet to close and is subject to regulatory approval. Taalas develops specialized semiconductor chips designed to run the large language models that power artificial intelligence systems. The company was founded just three years ago. The acquisition by AMD marks a major exit for the Canadian startup amid intense global demand for AI infrastructure.
The deal ranks among the largest in Canadian tech history, though it is smaller than the US$4.75 billion acquisition of Calgary-based CoolIT Systems by Minnesota's Ecolab Inc. in March. Yadude Books reported in October that the tech sector has been urging Ottawa to expand capital gains tax incentives for startups to encourage more investment in high-growth companies. Meanwhile, the race to build infrastructure for artificial intelligence is creating ripple effects across Alberta. Landowners in rural communities near Calgary are being approached by companies seeking sites for data centres and the power plants needed to run them. One such project, a proposed 1,494-megawatt natural gas plant by Beacon Data Centers Inc., would generate enough electricity to power a city the size of Edmonton to fuel a neighbouring AI data centre.
Creig Antliff, a 75-year-old farmer who lives with his wife on an organic farm outside Calgary, said representatives from Beacon visited his property in May. After discussing the benefits of their project, the conversation quickly turned to an offer to buy his land. Mr. Antliff said he and his wife were not easy to convince. The situation highlights growing calls from some communities to slow the rapid development of data centres in the province.
With files from The Globe and Mail