NVIDIA Buys Chip-maker Mellanox for $6.9 Billion, Outbids Even Intel

NVIDIA just announced its biggest acquisition ever, the Israeli-based chip-maker Mellanox.

The final price was confirmed to be a whopping $6.9 billion, beating out Intel’s bid from a few months back of $6 billion.

What makes this somewhat-unknown chip-maker such an expensive proposition?

NVIDIA believes Mellanox will give the company a better standing in the server arena and a much better way to handle the processing power demanded by the explosion of AI-related projects.

“The acquisition will unite two of the world’s leading companies in high performance computing (HPC). Together, NVIDIA’s computing platform and Mellanox’s interconnects power over 250 of the world’s TOP500 supercomputers and have as customers every major cloud service provider and computer maker,” says NVIDIA.

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The company goes on to explain that Mellanox is known as an early innovator and that it “pioneered the InfiniBand interconnect technology, which along with its high-speed Ethernet products is now used in over half of the world’s fastest supercomputers and in many leading hyperscale datacenters.”

Jensen Huang, NVIDIA’s CEO, provided even more context on the acquisition, saying that “the emergence of AI and data science, as well as billions of simultaneous computer users, is fueling skyrocketing demand on the world’s datacenters.”

Mazel tov!

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