AMD · 10-K · 2025A · Full report

R&D Investment in AI

ADVANCED MICRO DEVICES INC · 2026-02-04 · Importance 73 · Surprise 66

Research and development expense was $8.1 billion in 2025, an increase of $1.6 billion (25%) versus 2024, driven primarily by higher employee-related costs and increased headcount to support AMD's AI strategy. AMD made strategic acquisitions to advance compiler and AI software capabilities, photonics and co-packaged optics, and high-speed inference technologies to strengthen its enterprise AI software stack and support optimized solutions across the stack. The company also invested in product development, launching 5th Gen EPYC processors and AMD Instinct MI350 Series GPUs in 2025 and expanding networking products (Pensando Pollara and Vulcano AI NICs) to address AI compute and scale-out networking. These investments are positioned to drive longer-term Data Center revenue growth and support AMD’s AI product roadmap.

Key facts

• AMD attributed the R&D increase primarily to higher employee-related costs from an increase in headcount in support of its AI strategy.