AMD Just Acquired MEXT to Crack the Memory Optimization Problem. Should Micron and Sandisk Investors Be Nervous?
Yahoo Finance ·
About two weeks ago, Advanced Micro Devices announced the acquisition of MEXT, a start-up that has built artificial intelligence (AI)-driven software designed to make NAND flash behave like dynamic random-access memory (DRAM). The technology uses predictive algorithms to identify frequently accessed data and move it between flash storage and high-speed memory in real time, reducing the amount of expensive DRAM a data center needs to run AI workloads at scale. According to MEXT's own press release, the software can cut memory costs by nearly half while expanding usable memory capacity by two to four times. For investors in Micron Technology ( MU 6.59% ) and Sandisk ( SNDK 10.45% ) , the knee-jerk read is obvious: If AMD can teach flash to behave like DRAM, demand for high-bandwidth memory contracts declines. The knee-jerk read is terribly wrong. MEXT's technology operates in the software tier between existing storage and compute. It doesn't replace DRAM or HBM. Instead, it reduces the amount of high-speed memory certain workloads require by optimizing what lives in it at any given moment. That's a meaningful efficiency gain for enterprise customers running general-purpose AI workloads , where memory is a cost constraint.
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