May 28 (Reuters) - Chipmaker Advanced Micro Devices

said on Wednesday it has acquired Enosemi, a builder of

photonic integrated circuits, to expand its co-packaged optics

offerings across AI systems.

AMD did not disclose the financial details of the deal.

Silicon Valley entrepreneurs and investors have pinned their

hopes on the optics technology, which they believe will be

central to building ever-larger computers for AI systems.

Co-packaged optics, as the emerging technology is called,

uses laser light to send information on fiber optic cables

between chips, resulting in faster and more energy-efficient

connections compared to traditional copper cables.

AMD acquired server maker ZT Systems for $4.9 billion

earlier this year to expand its portfolio of artificial

intelligence chips and hardware, and better compete with AI

giant Nvidia ( NVDA ).

(Reporting by Juby Babu in Mexico City; Editing by Shinjini

Ganguli)