AMD acquires Enosemi, a silicon photonics startup, to boost its AI strategy

AMD has acquired Enosemi, a startup specializing in custom materials for silicon photonics product development. The terms of the deal were not disclosed. Silicon photonics utilizes light, or photons, for data transmission, providing a faster and more efficient alternative to traditional electrical communication. AMD and other chipmakers have displayed a growing interest in this technology. Last year, AMD reportedly collaborated with several Taiwanese startups for silicon photonics R&D.

Enosemi’s acquisition by AMD is aimed at accelerating co-packaged optics innovation for AI systems. Brian Amick, SVP of tech and engineering at AMD, mentioned in a blog post that as AI models become larger and more complex, the demand for faster and more efficient data movement is increasing. Enosemi, based in Silicon Valley, designs and ships photonic integrated circuits, which are microchips containing multiple photonic components forming a functional circuit. The company was founded in 2023 by tech entrepreneurs Ari Novack and Matthew Streshinsky, who have a background in semiconductor engineering.

Before the acquisition, Enosemi had raised $150,000 in VC funding, with New Mexico Vintage Fund among its backers. Novack, now listed as a silicon design engineering fellow at AMD on LinkedIn, is one of the company’s founders. This marks AMD’s first acquisition since the ZT Systems deal, for which around $4.9 billion was initially paid. AMD is focusing on expanding its AI investments, with CEO Lisa Su noting that AI chip revenue reached $5 billion in 2024.