Nvidia acquires networking specialist Mellanox

Nvidia close to Mellanox deal

A bidding war for supercomputer chip maker Mellanox ended Monday with Nvidia announcing it will acquire the San Jose-based company for almost $7 billion.

The deal, which is Nvidia's largest to date, reportedly saw the firm topple a $6bn bid made by Intel. Nvidia's computing platform and Mellanox's interconnects power more than half the world's Top 500 supercomputers.

USA chipmaker Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion, beating rival Intel Corp in a deal that would help the firm boost its data center and supercomputer business. The all-cash acquisition is the for Nvidia, a company best known for its graphics processors for high-performance gaming.

The emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world's datacenters.

"Addressing this demand will require holistic architectures that connect vast numbers of fast computing nodes over intelligent networking fabrics to form a giant datacenter-scale compute engine".

As well as gaining significant resources from Mellanox, Nvidia's deal keeps these same resources out of the hands of direct competitors like Intel.

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Microsoft is one of Mellanox's biggest customers, as it uses the company's products for its Azure cloud. The company develops a number of products which overlap with Mellanox's offerings.

According to Nvidia, the company will buy Mellanox, which makes interconnects, for $125 in cash.

What follows are eight important things to know about the $6.8 billion Nvidia-Mellanox acquisition, including the market for Mellanox's products, what they're used for and the history of Mellanox's journey from activist investor spat to acquisition by Nvidia. Meanwhile Eyal Waldman, founder and CEO of Mellanox talked about how the two companies share the same vision. Mellanox will play a role in Nvidia's supercomputing, data centre and cloud service initiatives.

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