AMD Acquires Toronto's Taalas in Latest Deep-Tech Talent Sweep
AI-generated image · Bay Street Wire
The acquisition of the AI inference silicon startup marks the second Canadian chip firm AMD has bought in just over a year.
Advanced Micro Devices (AMD) has reached a definitive agreement to acquire Toronto-based Taalas, as BetaKit first reported. Taalas is a startup specializing in AI inference silicon. While financial terms were not disclosed, BetaKit reports that the deal is subject to regulatory approval and closing conditions.
Founded in 2023 by former AMD and Tenstorrent leaders—including CEO Ljubisa Bajic, COO Lejla Bajic, and CTO Drago Ignjatovic—Taalas focuses on hardwiring AI models directly onto chips to replace general-purpose GPUs. The company claims its process can launch new chips in two months, compared to the industry standard of one to two years, and aims for efficiency levels a thousand times greater than software counterparts. BetaKit notes that Taalas had previously raised $50 million from investors including Pierre Lamond and Quiet Capital, followed by another $169 million from a group that included Fidelity.
Vamsi Boppana, senior vice-president of AMD’s AI group, stated that Taalas' engineering team and technology will enhance AMD's AI portfolio by improving inference performance and efficiency. Ljubisa Bajic noted that joining the semiconductor giant provides the global reach and resources necessary to accelerate their innovation.
The move highlights a broader trend of U.S. giants absorbing Toronto's deep-tech ecosystem. BetaKit reports that AMD previously acquired the team behind Toronto startup Untether AI in 2025. Other notable exits or shifts include CentML, which was bought by Nvidia in 2025, and Hyperlume, an Ottawa-based firm purchased by Credo in 2025. Additionally, Tenstorrent has redomiciled to Santa Clara, California. AMD, which also invests in Xanadu and Cohere, stated the acquisition reflects a commitment to growing Canadian talent.