Chip-making Giant Mellanox Bought By Nvidia In This New Deal – ZMR News Blog

Chip-making Giant Mellanox Bought By Nvidia In This New Deal


The chip-maker Nvidia recently confirmed in one of the statements given to the media that it has recently purchased another chip-making giant in the business named Mellanox, which is an Israeli company, and the deal is said to be worth $6.9 billion, as per the data obtained from the sources. This bid trumped another offer which was made by Intel for nearly $6 billion, a few months ago. After it goes through, it is expected that this will be a game changer for the company Nvidia, as far as the competition in this particular field is considered.

The server market accounts for almost a third of the total sales of the company, and therefore it is expected to get benefited significantly in this case. The company Mellanox is known for the manufacturing of some really advanced chips that are used to power the high-speed Ethernet as well as the InfiniBand networks which are used to connect the servers, along with some other functions. These kinds of products are primarily used for the supercomputers which are used for AI as well as other types of computing.

As far as the demand for the data centers is concerned, it is growing with a rapid rate mainly because of the emergence of data science as well as AI, along with the rise in the number of computer users. The company Nvidia also faced some setbacks in the recent past including the fall in the revenue by nearly 22% because of the decline of Bitcoin mining, among other factors. But now, with the acquisition of this company Mellanox, Nvidia is now looking forward to expanding in all those areas where the attention is due. Mellanox CEO, named Eyal Waldman, recently said in an interview that combining the two companies has come as an extension of the friendship that both have shared.

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