Advanced Micro Devices (AMD) is negotiating major purchase agreements for continuous-wave (CW) lasers to bolster its silicon photonics ecosystem. This strategic move secures critical components for high-speed optical interconnects within artificial intelligence infrastructure. The initiative directly counters Nvidia, which has already locked up significant portions of the laser supply chain through strategic investments.
AMD will utilize co-packaged optics (CPO) to enable faster and more efficient data transfer between chips. This technology is foundational for the company’s next-generation Instinct MI500 series AI accelerators. The strategy is underpinned by the 2025 acquisition of photonics firm Enosemi.
GlobalFoundries will manufacture the required photonic integrated circuits for the new hardware. These investments address the accelerating demand for higher bandwidth and lower power consumption in modern data centers. By securing its own photonics capabilities, AMD aims to prevent future production constraints and ensure its AI hardware remains competitive.