Monday, April 27th 2020

NVIDIA Completes Acquisition of Mellanox

NVIDIA today announced the completion of its acquisition of Mellanox Technologies, Ltd., for a transaction value of $7 billion. The acquisition, initially announced on March 11, 2019, unites two of the world's leading companies in high performance and data center computing. Combining NVIDIA's leading computing expertise with Mellanox's high-performance networking technology, the move will enable customers to achieve higher performance, greater utilization of computing resources and lower operating costs.

"The expanding use of AI and data science is reshaping computing and data center architectures," said Jensen Huang, founder and CEO of NVIDIA. "With Mellanox, the new NVIDIA has end-to-end technologies from AI computing to networking, full-stack offerings from processors to software, and significant scale to advance next-generation data centers. Our combined expertise, supported by a rich ecosystem of partners, will meet the challenge of surging global demand for consumer internet services, and the application of AI and accelerated data science from cloud to edge to robotics."
NVIDIA finishes acquiring Mellanox
Eyal Waldman, founder and CEO of Mellanox, said: "This is a powerful, complementary combination of cultures, technology and ambitions. Our people are enormously enthusiastic about the many opportunities ahead. As Mellanox steps into the next exciting phase of its journey, we will continue to offer cutting-edge solutions and innovative products to our customers and partners. We look forward to bringing NVIDIA products and solutions into our markets, and to bringing Mellanox products and solutions into NVIDIA's markets. Together, our technologies will provide leading solutions into compute and storage platforms wherever they are required."

The acquisition is expected to be immediately accretive to NVIDIA's non-GAAP gross margin, non-GAAP EPS and free cash flow, inclusive of incremental interest expense related to NVIDIA's recent issuance of $5 billion of notes.

For Mellanox Shareholders
For more information on how to obtain payment and important tax considerations, Mellanox shareholders should refer to the FAQ on NVIDIA's investor relations website.
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13 Comments on NVIDIA Completes Acquisition of Mellanox

#1
Caring1
Sounds more like the name of a drug.
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#2
Cheeseball
Not a Potato
It really does sound like NVIDIA wants in with InfiniBand. It's currently the better alternative to Intel's Omni-Path.
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#3
M2B
Now that ARM cores are getting really strong, the next step for Nvidia is probably to design their own Datacenter/Server CPUs as well.
They can have a pretty much complete ecosystem.
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#4
renz496
M2B
Now that ARM cores are getting really strong, the next step for Nvidia is probably to design their own Datacenter/Server CPUs as well.
They can have a pretty much complete ecosystem.
nvidia aim most likely to have an interconnect that can work well with any type of CPU. NVlink is pretty much limited to IBM Power CPU only. they probably don't want to compete on the CPU front.
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#5
Vayra86
M2B
Now that ARM cores are getting really strong, the next step for Nvidia is probably to design their own Datacenter/Server CPUs as well.
They can have a pretty much complete ecosystem.
They tried ARM CPUs before and it really didn't work out too well. They still have them, too, and still try to market them too. Its still not really picking up steam.
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#6
M2B
Vayra86
They tried ARM CPUs before and it really didn't work out too well. They still have them, too, and still try to market them too. Its still not really picking up steam.
Their Automotive revenue was 700$ million in 2019 which is a 10% improvement compared to 2018.
That's not a big part of their business for sure but still a decent amount.
And I expect this to further improve when their next-gen orin chip releases.
But that wasn't my point really. I meant Data Center specific CPUs which they've never tried before.
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#7
renz496
Vayra86
They tried ARM CPUs before and it really didn't work out too well. They still have them, too, and still try to market them too. Its still not really picking up steam.
it is mostly for SoC not for server stuff.
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#8
Steevo
M2B
Their Automotive revenue was 700$ million in 2019 which is a 10% improvement compared to 2018.
That's not a big part of their business for sure but still a decent amount.
And I expect this to further improve when their next-gen orin chip releases.
But that wasn't my point really. I meant Data Center specific CPUs which they've never tried before.
I think that was prior to Tesla dumping Nvdida for their own design in 2019.
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#9
edbe
internet idea is ruined due of Ads..
now with ai in long time players..selective Ads will be all but delivered as accordance..
and within an jungle of scripts..all..is..funny you will wonder why your 32 core cpu can't handle youtube..
now you know the answer..of course..if you can see it..
Posted on Reply
#10
Vayra86
edbe
internet idea is ruined due of Ads..
now with ai in long time players..selective Ads will be all but delivered as accordance..
and within an jungle of scripts..all..is..funny you will wonder why your 32 core cpu can't handle youtube..
now you know the answer..of course..if you can see it..
And then everyone installs an adblocker and that was that:roll:
Posted on Reply
#11
kid41212003
GeForce Now is just to test the water. Cloud computing is where the money now. I think Intel wanted to acquire Mellanox too but didn't succeed. They probably have the same idea.
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#12
Fabio Bologna
Get ready for RTXQSFP+4080Ti Super
The first GPU to incorporate also a 100gbps infiniband port for that ultra low ping time on CS:GO!
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#13
HisDivineOrder
Vayra86
And then everyone installs an adblocker and that was that:roll:
Then the Big Companies will buy or lease-to-own the browser makers and the tech adblockers use will be made to not work. And magically Google will come up with some tech that supplants what piholes use, making it impossible to kill the ads.

One day you wake up and you find the only escape from ads is when you sleep and even then, quietly behind the tinnitus you'll realize Google Home Mini's are whispering while you sleep once they've determined you're out. There is no escape.
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