AMD Acquires Silicon Photonics Startup Enosemi to Boost AI Technology

In a strategic move to strengthen its position in the artificial intelligence (AI) sector, AMD has announced the acquisition of Enosemi, a Silicon Valley-based startup specializing in silicon photonics. The deal, disclosed on May 28, 2025, aims to accelerate AMD's development of co-packaged optics technologies critical for next-generation AI systems.

Enosemi, founded just two years ago, focuses on designing custom materials and photonic integrated circuits that enhance data movement within servers. This technology is pivotal for handling the massive computational demands of AI workloads, positioning AMD to compete more effectively with industry giants like Nvidia.

The acquisition builds on an existing collaboration between AMD and Enosemi, integrating the startup’s expertise in chiplets and custom silicon into AMD’s broader AI strategy. This move is expected to enhance AMD’s capabilities in creating efficient, high-speed interconnects for data centers, a crucial component for scaling AI applications.

While the financial terms of the deal remain undisclosed, industry analysts suggest that this acquisition underscores AMD’s commitment to becoming a full-stack supplier in the data center space. By incorporating Enosemi’s photonics solutions, AMD aims to address the growing need for faster and more energy-efficient data transfer in AI systems.

The timing of this acquisition aligns with the increasing demand for advanced optics in AI infrastructure, as companies race to optimize performance and reduce latency. AMD’s focus on silicon photonics through Enosemi could provide a significant edge in the competitive AI hardware market.

As AMD continues to expand its portfolio through strategic acquisitions, the integration of Enosemi’s technology is anticipated to play a key role in shaping the future of AI-driven computing. This development signals AMD’s ambition to lead innovation in the rapidly evolving tech landscape.