AMD Acquires Enosemi to Boost AI Chip Development

AMD Boosts AI Capabilities with Enosemi Acquisition

AMD has acquired Enosemi, a Silicon Valley-based startup specializing in silicon photonics, to accelerate the development of its AI hardware. This strategic move aims to improve data transmission speed and efficiency within AI systems.

Silicon photonics utilizes light (photons) for data transfer, offering significant advantages over traditional electrical communication. This technology is increasingly crucial for handling the growing complexity and size of AI models.

Faster Data Movement for Next-Gen AI

Brian Armick, SVP of Technology and Engineering at AMD, stated, "As AI models grow larger and more complex, the need for faster, more efficient data movement is accelerating." This acquisition builds upon a prior collaborative relationship between AMD and Enosemi.

Enosemi has collaborated with us as an external development partner on photonics, and this acquisition extends that successful relationship. Now, as part of AMD, the team will help us immediately scale our ability to support and develop a variety of photonics and co-packaged optics solutions across next-gen AI systems.

Enosemi develops photonic integrated circuits, which are microchips combining multiple photonic components. Founded in 2023, the company focuses on products like optical interconnects for data centers.

This acquisition marks AMD's first since its purchase of ZT Systems and underscores its commitment to advancing AI technology. AMD's AI chip revenue reached $5 billion in 2024, highlighting the growing importance of this sector for the company.

Further details of the acquisition, including the financial terms, were not disclosed.