AMD Acquires Enosemi to Enhance Co-Packaged Optics for AI Systems

Chipmaker Advanced Micro Devices (AMD) has announced the acquisition of Enosemi, a Silicon Valley-based company specializing in photonic integrated circuits, as part of its strategy to bolster co-packaged optics offerings for next-generation AI systems. The deal, revealed on May 28, 2025, aims to accelerate AMD's development of cutting-edge technologies designed to support the growing demands of artificial intelligence.

Enosemi has been a key player in the development of silicon photonics, a technology that uses light to transmit data at high speeds with greater efficiency compared to traditional electrical connections. This acquisition positions AMD to integrate Enosemi’s expertise into its portfolio, enabling faster data movement crucial for handling the massive computational needs of modern AI models.

While the financial details of the transaction remain undisclosed, industry experts believe this move signals AMD’s intent to strengthen its competitive edge against rivals like Nvidia in the rapidly evolving AI hardware market. Co-packaged optics are seen as a critical component in building larger, more efficient computing systems for AI applications.

The collaboration between AMD and Enosemi is not new, as the two companies have previously worked together on photonics development projects. This acquisition formalizes and extends their partnership, promising to deliver innovative solutions that could redefine data processing capabilities in high-performance computing.

Silicon Valley entrepreneurs and investors have long emphasized the potential of optics technology to revolutionize computing. With this acquisition, AMD is poised to lead in the adoption of photonics, potentially setting new standards for speed and efficiency in AI infrastructure.

As AMD continues to expand its technological footprint, the integration of Enosemi’s capabilities is expected to play a pivotal role in shaping the future of AI-driven systems. Industry watchers are keenly observing how this strategic acquisition will impact AMD’s market position in the coming years.