Chip firm AMD has acquired storage software startup MEXT.

Announced this week, AMD said the acquisition expands its AI portfolio and will help customers through memory optimization technology designed to improve performance, reduce total cost of ownership, and accelerate time to deployment.

Terms of the deal were not shared.

MEXT’s Predictive Memory is a software-only solution that makes flash appear as DRAM to the operating system. Its AI-powered predictive memory technology is designed to help expand usable memory capacity while maintaining the performance and efficiency of flash storage, the company claims.

With DRAM costs increasing, AMD and MEXT are betting on reducing server costs via flash storage. The two firms first partnered in 2024.

Founded in 2023 and based in Santa Clara, California, MEXT has raised $10.6m to date, according to Crunchbase data. Investors include FJ Labs, Clear Ventures, DN Capital, Uncorrelated Ventures, Page One Ventures.

MEXT CEO Gary Smerdon was previously CEO of software-defined server firm TidalScale. After a 15-year stint at AMD, he held roles at storage firm Paviolion as well as Marvell, Greenfield Networks (now Cisco), LSI Corp, and Fusion-io (now Sandisk).

“Now, as part of AMD, we have the opportunity to bring Predictive Memory to a much broader market. The real work begins: helping customers improve price-performance, expand memory capacity, and unlock capabilities that would otherwise not be possible,” Smerdon said on LinkedIn. “MEXT AI-Powered Predictive Memory software and AMD EPYC processors are a powerful combination, and I'm excited about what comes next.”

Dan McNamara, AMD SVP and GM for Compute & enterprise AI, added: “As AI and data center workloads continue to scale, memory is becoming a key constraint across performance, efficiency, and cost. MEXT has built AI-powered predictive memory technology that directly addresses this challenge and gives customers a more efficient way to utilize memory. This is a focused step that builds on our data center and AI strategy and adds a team with deep, specialized expertise in an area that matters.”