AMD Acquires Enosemi: Boosting AI Capabilities with Silicon Photonics

AMD Acquires Silicon Photonics Specialist Enosemi

AMD has completed the acquisition of Enosemi, a company focused on the design of specialized materials for the advancement of silicon photonics product development. The financial details of this transaction, which was publicly announced on Wednesday, have not been revealed.

Understanding Silicon Photonics

Silicon photonics utilizes light – specifically photons – as the medium for data transmission. This approach presents a quicker and more energy-efficient alternative when compared to conventional electrical communication methods. Interest in this technology is growing among AMD and other leading chip manufacturers.

Late in the previous year, reports indicated that AMD initiated a research and development collaboration with several startups located in Taiwan, specifically centered around silicon photonics.

Accelerating Innovation in AI Systems

According to AMD, the acquisition of Enosemi is strategically aimed at “accelerating co-packaged optics innovation for AI systems.”

Brian Amick, Senior Vice President of Technology and Engineering at AMD, explained in a blog post that the increasing size and complexity of AI models are driving a demand for faster and more efficient data transfer. He stated, “Enosemi has collaborated with us as an external development partner on photonics, and this acquisition extends that successful relationship.”

Amick further noted that integrating the Enosemi team into AMD will enable the company to rapidly expand its capabilities in supporting and developing a diverse range of photonics and co-packaged optics solutions for future generations of AI systems.

About Enosemi

Based in Silicon Valley, Enosemi specializes in the creation and distribution of photonic integrated circuits. These microchips incorporate multiple photonic components to create a fully functional circuit.

The company was established in 2023 by a team of technology entrepreneurs, including Ari Novack and Matthew Streshinsky, both possessing extensive experience in semiconductor engineering. Enosemi’s product portfolio includes optical interconnects, designed to integrate computing and networking components within data center environments.

Funding and Team

Prior to the acquisition, Enosemi secured $150,000 in venture capital funding from investors such as New Mexico Vintage Fund. As of May, the company employed 16 individuals, as reported by PitchBook.

Ari Novack’s LinkedIn profile now reflects his position as a silicon design engineering fellow at AMD.

Strategic Acquisitions and AI Investment

This acquisition marks AMD’s first since the substantial purchase of ZT Systems. The original acquisition price for ZT Systems was approximately $4.9 billion. (AMD recently reached an agreement to sell ZT Systems’ server-manufacturing business for $3 billion earlier this month.)

AMD is significantly increasing its investments in artificial intelligence. During a February earnings call, CEO Lisa Su announced that the company’s AI chip revenue reached $5 billion in 2024.