NVIDIA confirms the purchase of Mellanox for 6,900 million dollars. This is done with the Israeli chip manufacturer for supercomputers , a crucial sector to strengthen services in the cloud. The completion of the purchase is expected by the end of 2019, but with its bid NVIDIA manages to close the transaction and outperform companies such as Intel and Microsoft that had also shown interest in the purchase.
Microsoft was one of the first interested and then Intel appeared with an offer close to $ 6,000. But it was NVIDIA that managed to win the bid after signing a purchase agreement at $ 125 per share, in cash.
With the acquisition, NVIDIA and Mellanox will jointly dispose of more than half of the TOP500 supercomputers . Among its customers, as the company explains, are all the large providers of cloud services and computer manufacturers.
In NVIDIA they believe that Moore’s law is dead and advances in CPU are getting smaller. But in the middle of this situation is the great demand for power that requires artificial intelligence, large data centers and scientific analysis .
Mellanox developed InfiniBand technology to interconnect diverse nodes in parallel and allow to build large data centers with the most optimal performance. Thanks to this technology, NVIDIA aims to optimize its own centers and reduce the cost of operations.
Jensen Huang, CEO of NVIDIA, has stated that ” the emergence of artificial intelligence and information science, as well as millions of connected users simultaneously, is fueling the increasing demand of the world’s data centers. demand will require holistic architectures that connect large numbers of computing nodes through smart grids. “
While on the part of the CEO of Mellanox, Eyal Waldman, has declared that ” the combination of the two companies is a natural extension due to our common culture “. And an example they show are the Sierra and Summit supercomputers operated by the US Department of Energy, where there was already a previous collaboration between NVIDIA and Mellanox , as well as other brands such as IBM or Red Hat.