Nvidia outbids Intel to buy Israel's Mellanox in data center push

Nvidia outbids Intel to buy Israel's Mellanox in data center push

Nvidia outbids Intel to buy Israel's Mellanox in data center push

Calcalist said that Nvidia would have an advantage over Intel in its bid, as it would have a greater chance of getting both U.S. and Chinese regulatory approvals, given that Intel and Mellanox control the market for InfiniBand technology, a computer-networking communications standard that is used in high performance computers. Financial news website Calcalist had reported earlier on Sunday that Nvidia had outbid Intel for Mellanox.

Nvidia gets more revenue diversification and data center sales.

[O] ver the past several years, the emergence of artificial intelligence and machine learning and data analytics has put so much load on the datacenters, and the reason is that the data size and the compute size is so great that it doesn't fit on one computer. Mellanox was arguably well positioned to take advantage of this growth before being acquired, and those benefits will flow to Nvidia now.

"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.

In its press announcement, Nvidia said it will acquire all Mellanox stock for $125 per share.

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The US computer giant Nvidia has made its biggest-ever acquisition with a $6.9bn (£5.3bn) takeover of Israel's Mellanox. Imagine the possibility of combining NVLink - Nvidia's high-speed protocol for intra-GPU communication - with Mellanox's networking and server products. The rate at which chips direct that traffic has become increasingly important as corporate computer networks and cloud service providers try to make sense of the growing flood of data being generated.

Credit Suisse and JP Morgan advised Mellanox, while Goldman Sachs advised Nvidia.

This deal only increases the competitive rivalry between NVDA and INTC to go beyond GPUs to include Infiniband and Ethernet.

Mellanox's focus is on technology for networking and data storage.

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