(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.

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