The game plan for Nvidia is to use Mellanox to optimize data center workloads across compute, networking and storage.
Calcalist said that Nvidia would have an advantage over Intel in its bid, as it would have a greater chance of getting both USA and Chinese regulatory approvals, given that Intel and Mellanox control the market for InfiniBand technology, a computer-networking communications standard that is used in high performance computers.
"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".
US chipmaker Nvidia Corp has agreed to buy Israeli chip designer Mellanox Technologies Ltd for $6.8 billion, beating rival Intel Corp in a deal that would help the firm boost its data center and supercomputer business. Its network tech is thus installed in "over half of the world's fastest supercomputers and in many leading hyperscale datacenters", boasts new owner Nvidia. "I am particularly thrilled to work closely with the visionary leaders of Mellanox and their wonderful people to invent the computers of tomorrow".
Nvidia will acquire all issued and outstanding common shares of Mellanox for $125 per share in cash. Meanwhile Eyal Waldman, founder and CEO of Mellanox talked about how the two companies share the same vision.
"This combination will foster the creation of powerful technology and fantastic opportunities for our people". Xilinx is also a fabless semiconductor company that is apparently interested in snatching up its fellow chipmaker. Our studies consistently show that buyers want systems to support a wide and growing variety of processors and other components.
Mellanox, originally founded in Israel, has a long history of collaboration and joint innovation with Nvidia.
The headlining transaction has already been approved by both companies' boards of directors and is expected to close by the end of calendar year 2019.