AMD Acquires Enosemi to Boost Silicon Photonics for Advanced AI Systems

AMD has acquired Enosemi, a Silicon Valley-based startup focused on silicon photonics, to bolster its artificial intelligence (AI) ambitions. The financial details of the deal were not disclosed, but the announcement was made on Wednesday. Silicon photonics technology utilizes light, or photons, for data transmission, providing a speedier and more efficient method compared to traditional electrical communication. This shift in technology is particularly relevant as AI models continue to grow in size and complexity, driving the need for advanced data movement solutions. In a blog post, Brian Amick, Senior Vice President of Technology and Engineering at AMD, highlighted the strategic importance of the acquisition. "As AI models become more sophisticated, the demand for rapid and efficient data transfer is intensifying," Amick wrote. "Enosemi has been a valuable external development partner in our photonics initiatives. By integrating Enosemi into AMD, we can quickly scale our capabilities and expand our range of photonics and co-packaged optics solutions for next-generation AI systems." Founded in 2023 by Ari Novack and Matthew Streshinsky, both seasoned semiconductor engineers, Enosemi specializes in photonic integrated circuits. These microchips contain multiple photonic components, forming functional circuits used for various applications, including optical interconnects that enhance the integration of computing and networking components within data centers. Before the acquisition, Enosemi had successfully raised $150,000 in venture capital funding from investors such as the New Mexico Vintage Fund. The company had a team of 16 employees as of May, according to PitchBook data. Novack, one of the founders, has already updated his LinkedIn profile to reflect his new role as a silicon design engineering fellow at AMD. This marks AMD's first acquisition since its significant purchase of ZT Systems for approximately $4.9 billion. In early June, AMD finalized an agreement to sell ZT Systems' server-manufacturing business for $3 billion. The company is clearly focused on expanding its AI portfolio, a move that CEO Lisa Su emphasized during an earnings call in February. According to Su, AMD's AI chip revenue surpassed $5 billion in 2024, underscoring the company's growing market presence in the AI sector. By integrating Enosemi's expertise, AMD aims to stay at the forefront of innovation in AI hardware, addressing the critical challenge of high-speed, low-latency data transfer that is essential for the performance and efficiency of advanced AI systems. This strategic move not only enhances AMD's technological capabilities but also aligns with the industry trend toward more integrated and efficient data transfer solutions. The acquisition of Enosemi is expected to bring immediate benefits to AMD's ongoing research and development efforts. With access to Enosemi's cutting-edge photonic Integrated Circuits and experienced team, AMD can accelerate the development of co-packaged optics solutions, a key component in the evolution of AI infrastructure. Overall, this acquisition reflects AMD's commitment to investing in promising technologies that will shape the future of AI computing. As the industry continues to advance, companies like AMD that prioritize innovation and strategic partnerships are well-positioned to lead the charge.