While this is a brilliant move by AMD, I believe it will not instantly break Nvidia's CUDA software moat nor bridge the immediate hardware gap.
Instead of fighting a losing battle trying to clone CUDA, AMD's CEO Dr Lisa Su is building a vertical end to end open AI ecosystem. This latest acquisition allows AMD to co design future silicon alongside the frontier software models that will run on them.
The Verdict: Buy the Dip or Wait & See?
It is good that AMD isn't burning through lots of money for this deal since it is an all stock transaction. However the commercial return cycle for physical AI and spatial computing may take years to fully materialise.
For long term investors : it is a compelling buy on dips scenario.
For short term investors: It is best to wait and see.
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