NVIDIA has acquired Mellanox Technologies, an Israeli-based networking company. The acquisition was concluded to the tune of US$6.9 billion (~RM28.15 billion), with NVIDIA reportedly outbidding Intel – among other companies – by US$900 million (~RM3.67 billion).
The purchase essentially means that NVIDIA gets to add Mellanox’s accelerated networking platform to its already expansive portfolio of AI, data centre, and automotive technology. Mellanox itself is renowned for being one of the world leaders in the field as well, supplying networking products using InfiniBand and Ethernet technology.
Besides manufacturing consumer desktop graphics cards, half of NVIDIA’s revenue comes from the sales of GPU-based, high-performance compute (HPC) data centres. To date, its servers have been used by higher learning institutions like Monash University to further the data-processing of medical and scientific endeavours. As well as being a part of Singapore’s traffic infrastructure.
The acquisition is something of a reprieve for NVIDIA. Back in December, the company’s market share took a hit, losing nearly 50% of its value. Due to a declining interest in cryptocurrency mining. Months later, NVIDIA’s then biggest shareholder, SoftBank Group, sold off its shares in the company for a handsome sum of US$3.3 billion (~RM13.46 billion).