AMD has announced the acquisition of Enosemi, a Silicon Valley-based startup focused on designing custom materials and photonic integrated circuits for silicon photonics product development. The financial terms of the deal, revealed on Wednesday, were not disclosed.
Silicon Photonics: Powering Next-Gen AI
Silicon photonics leverages light, or photons, to transmit data, offering a faster and more efficient alternative to traditional electrical communication. This technology is gaining traction among major chipmakers, including AMD, as the demand for high-speed data movement in artificial intelligence (AI) systems continues to grow.
Late last year, AMD reportedly partnered with several Taiwanese startups to collaborate on silicon photonics research and development. The acquisition of Enosemi marks a significant step in AMD’s strategy to accelerate innovation in co-packaged optics for AI systems.
Enosemi’s Role and Expertise
Enosemi specializes in building and shipping photonic integrated circuits—microchips that combine multiple photonic components into a single, functional circuit. Founded in 2023 by semiconductor engineers Ari Novack and Matthew Streshinsky, Enosemi’s products include optical interconnects that integrate computing and networking components within data centers.
Prior to the acquisition, Enosemi raised $150,000 in venture capital funding from investors such as the New Mexico Vintage Fund. As of May, the company employed 16 people, according to Pitchbook. Ari Novack now lists his position as a silicon design engineering fellow at AMD.
Strategic Impact for AMD
Brian Armick, AMD’s Senior Vice President of Technology and Engineering, commented in a blog post: “As AI models grow larger and more complex, the need for faster, more efficient data movement is accelerating. 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.”
This acquisition is AMD’s first since its major purchase of ZT Systems, for which it paid approximately $4.9 billion. Earlier this month, AMD agreed to sell ZT Systems’ server-manufacturing business for $3 billion.
AMD is intensifying its investments in AI, with CEO Lisa Su reporting $5 billion in AI chip revenue for 2024 during a recent earnings call.
