Advanced Micro Devices announced that it has acquired MEXT, a startup specializing in AI-driven memory optimization technology, to address memory bottlenecks affecting data center operators scaling AI workloads.
AMD disclosed the acquisition on Monday but did not reveal financial terms. MEXT launched its flagship Predictive Memory software in April 2026, which allows inexpensive flash storage to behave more like DRAM. This technology expands usable memory capacity while maintaining performance by identifying inactive memory pages and offloading them to flash storage, which costs about 50 times less than DRAM.
Dan McNamara, AMD’s senior vice president and general manager of Compute and Enterprise AI, stated, “By integrating MEXT’s technology across the AMD data center portfolio, we expect to help enterprise customers unlock greater value from their infrastructure investments while accelerating AI deployment.”
The acquisition addresses a growing industry challenge where memory has become a critical constraint in cloud and enterprise environments due to the increasing size and complexity of AI models and data analytics workloads. Following the announcement, AMD’s shares rose, with the company nearing a $900 billion valuation, as reported by MarketWatch.
MEXT claimed its software could reduce infrastructure costs by 50% and expand usable memory capacity by two to four times. This deal enhances AMD’s expertise in memory systems as it competes with Nvidia and Intel for leadership in AI data center infrastructure.
This acquisition is part of AMD’s strategy to develop full-stack AI solutions instead of focusing solely on chip production. By merging its high-performance processors with software that minimizes memory-related costs, AMD aims to provide a more comprehensive and cost-effective approach for customers deploying AI at scale.
