Latest in Gear

Image credit: Bloomberg via Getty Images

NVIDIA buys high-performance chip-maker Mellanox for $6.9 billion

It beat Intel in a bid that will boost its server, self-driving and networking segments.
1709 Shares
Share
Tweet
Share
Save

Sponsored Links

NVIDIA confirmed that it has purchased Israeli chip-maker Mellanox for $6.9 billion, its largest acquisition to date. The bid, rumored for several days, trumped a $6 billion offer made by Intel several months ago. It will reportedly help NVIDIA better compete in the server market, which accounts for about a third of its sales.

Mellanox primarily manufactures chips that power high-speed ethernet and InfiniBand networks that connect servers. Such products are used in data centers cloud and storage, as well as for high-performance supercomputers used for AI and other types of data-intensive computing.

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

2019 Consumer Electronics Show Highlights New Products And Technology

NVIDIA shows off its self-driving tech at CES 2019

NVIDIA saw its revenue fall 22 percent last quarter thanks to the recent decline of Bitcoin mining, tepid sales of its latest GPUS and trade problems in China. The one bright spot has been AI and cloud computing, where it's products are used for autonomous vehicles, robots and neural networks.

With the acquisition of Mellanox, NVIDIA will be able expand in those areas. The Israeli company's technology is used "in over half of the world's fastest supercomputers" along with so-called hyperscale datacenters, NVIDIA points out. It adds that workloads in those areas are growing exponentially, but CPU performance keeps slowing down because of Moore's Law.

That in turn has increased demand for products from both NVIDIA and Mellanox. "Combining our two companies comes as a natural extension of our longstanding partnership and is a great fit given our common performance-driven cultures," said Mellanox CEO Eyal Waldman.


Video
Presenter: Terrence O'Brien
Script: Terrence O'Brien
Script Editor: Dana Wollman
Camera: Savanna De Stefano
Editor: Kyle Maack
Producer: Michael Morris

All products recommended by Engadget are selected by our editorial team, independent of our parent company. Some of our stories include affiliate links. If you buy something through one of these links, we may earn an affiliate commission.
Comment
Comments
Share
1709 Shares
Share
Tweet
Share
Save

Popular on Engadget

Engadget's Guide to Privacy

Engadget's Guide to Privacy

View
‘Untitled Goose Game’ arrives today on Mac, PC and Switch

‘Untitled Goose Game’ arrives today on Mac, PC and Switch

View
One of the best mice on the market is on sale for $67

One of the best mice on the market is on sale for $67

View
The best home security system

The best home security system

View
Not even Allbirds is safe from Amazon's copycat ways

Not even Allbirds is safe from Amazon's copycat ways

View

From around the web

Page 1Page 1ear iconeye iconFill 23text filevr