NVIDIA Snags Mellanox Out From Under Intel

NVIDIA Snags Mellanox Out From Under Intel

Mellanox is based in Israel and the United States and the company's chips are used to power high-speed networks connecting servers. Fending off competition from Microsoft and Intel, NVIDIA's bid of $6.9 billion was enough to secure the deal which is expected to be finalized by the end of the year.

There's a chance that the Mellanox could be returning to the fold, however: Reports have begun to circulate that Intel has been bidding to acquire Mellanox, but the most recent of these warns that it is being outbid by Nvidia as the company looks to extend its efforts in the high-performance computing (HPC) market.

Nvidia's advantage is that it would have a greater chance of obtaining USA and Chinese regulatory approval as Intel and Mellanox control the market for InfiniBand technology, a networking communications standard commonly used in supercomputers, Calcalist said.

It will reportedly help NVIDIA better compete in the server market, which accounts for about a third of its sales.

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"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", Nvidia CEO Jensen Huang said. But the performance growth of the GPUs that NVIDIA makes has not slowed in the same way, and they have been found to work particularly well in modern, datacenter-based workloads.

Xilinx Inc was also part of the process, sources said. Mellanox will play a role in Nvidia's supercomputing, data centre and cloud service initiatives. Our vision is that datacenters are the most important computers in the world today... Nvidia and Mellanox aren't strangers; they have previously worked together on several products including the likes of the Nvidia DGX-2, as well as the #1 and #2 USA supercomputers - Summit and Sierra.

Mellanox will be accretive to Nvidia's non-GAAP earnings and cash flow.

Nvidia announced at the Consumer Electronics Show in Las Vegas in January an autopilot system for self-driving vehicles called Nvidia Drive.

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