Nvidia Buys Melanox In Its Largest Acquisition Ever
In a direct contest for Data Center Market, Nvidia buys high-performance chip-maker Mellanox for $6.9 billion. The significance of the acquisition may be further underpinned by the fact that Nvidia beat Intel in a bid that will have its ramifications over high end servers as well as AI and networking segment in the future.
This is Nvidia the largest acquisition to date and will help NVIDIA better compete in the server market. “The strategy is doubling down on datacenters” and in particular “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.”
Going through a period of revenue fall, this acquisition will help Nvidia to return its focus to AI and cloud computing, where its products are used for autonomous vehicles, robots and neural networks With the acquisition of Mellanox, NVIDIA will be able to expand and strengthen 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.
Mellanox primarily manufactures chips that power a range of high-speed Ethernet and InfiniBand network adapters and switches 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.
L3C team is exciting on these news as L3C recently became Nvidia partner on DGX technology, providing such instances in its cloud solutions. For every project that we work on with deep learning and machine learning, we need a high-speed connectivity infrastructure to connect all training nodes. Mellanox has always been one of the most suitable solutions.
Find out more on our DGX instances here: