Nvidia to acquire Mellanox for US$6.9bn - General Business

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Nvidia to acquire Mellanox for US$6.9bn - General Business

Nvidia and Intel, as is usual for the companies, have refused to speculate on the sources' claims, but an announcement from the successful bidder is expected early this week.

Nvidia has invested heavily in its datacentre and AI technologies over the years and acquiring Mellanox will be an extension of that. Nvidia reportedly outbid Intel the for the company.

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.

Connectivity and bandwidth are increasingly becoming a bottleneck in datacenter and artificial-intelligence applications as the size of workloads and datasets increases, according to Stacy Rasgon at Bernstein.

"This exciting transaction would unite two HPC industry leaders and strengthen the combined company's ability to create data-centric system architectures for the convergence of the HPC and hyperscale markets around AI and other HPDA tasks", said Steve Conway, COO and Research SVP at Hyperion Research.

"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 founder and CEO Jensen Huang in a statement.

With the acquisition, the of Nvidia and Mellanox will have "every major cloud service provider and computer maker" as a customer.

This high-profile interest is hardly surprising; Mellanox is renowned for its high-performance computing and networking tech and makes adapters, switches, and chips for InfiniBand and Ethernet network devices that are used in more than half of the world's publicly-listed fastest computers.

Mellanox, originally founded in Israel, has a long history of collaboration and joint innovation with Nvidia. Mellanox also gives Nvidia access to the high-speed networking market. The firm outbid microprocessor giant Intel, which was looking to use Mellanox to expand its datacenter capabilities.

Analysts were upbeat on the purchase.

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