NVIDIA has bought high-performance chipmaker Mellanox for $ 6.9 billion

NVIDIA has confirmed that it had bought the Israeli chipmaker Mellanox. The deal amounted to $ 6.9 billion, and it has become the largest acquisition of the company today.
NVIDIA's offer turned out to be more generous than Intel was ready to pay ($ 6 billion). Thanks to the new deal, NVIDIA will be able to better compete in the server market, which accounts for about a third of sales.
Mellanox mainly manufactures high-speed Ethernet and InfiniBand chips that connect servers. Such products are used in cloud data centers and storage, as well as in high-performance supercomputers used for artificial intelligence and other types of demanding to compute.
In the past quarter, NVIDIA recorded a decline in revenue of a substantial 22%. This was due to a decline in demand for crypto-currency mining cards, weak sales of the latest generation of GPUs that were available only in the expensive segment, as well as trading problems in China. Only the segment of AI and cloud computing showed growth.
These NVIDIA products are used for autonomous vehicles, robots, and neural networks. With the acquisition of Mellanox, NVIDIA will be able to expand its presence in these areas.
NVIDIA notes that the technology of the Israeli company is used "in more than half of the fastest supercomputers in the world" along with the so-called hyper-scale data centers.
It is noted that workloads in these areas are growing exponentially, but the performance of the processors does not keep up with them. This, in turn, increased the demand for products from both NVIDIA and Mellanox.
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