NVIDIA will Acquire Mellanox for a cool $6.9 Billion

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Published by Danny 1 week ago , last updated 1 week ago

NVIDIA are showing no signs of wear following the declining GPU market, announcing today that they've entered into an agreement to buy Mellanox,  an industry leader in networking and ethernet technology, for a cool $6.9 Billion in cash.

Mellanox are a huge player in the datacentre and networking market, and are the company behind InfiniBand, an exciting computer-networking standard that provides very high bandwidth throughput with very low latency, which is proving popular in huge datacentres.

NVIDIA claim the move will bring two world's two leading companies in high performance computing together. This seems to be a play with the future of AI, datacentre-scale applications, networking and storage in mind, rather than a gaming GPU, but the implications for future gaming applications, especially on the online game-streaming space, seem obvious.

“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 Jensen Huang, founder and CEO of NVIDIA. “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. "

The vision for the future of datacentres will be as giant compute engines, powering everything from AI applications to video games, and everything inbetween.  InfiniBand would be a key advantage in this regard, as bandwidth and latency are the biggest challenges in any large scale datacentre environment.

It's not the first time the two companies have worked together, previously collaborating on two of the world's fastest supercomputers, named Sierra and Summit, now used by the U.S. Department of Energy, so this seems like a natural next step in that relationship.

NVIDIA also intend to retain the staff and talent of Israel based Mellanox, promising to invest in the region.


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