Enterprise, Data centers, Content

Nvidia Acquires Mellanox Technologies for Data Center Chips

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Nvidia is acquiring Mellanox Technologies for its data center chips in a $6.9 billion deal, the companies confirmed this morning.

Mellanox buyout rumors have swirled multiple times in recent months. Intel reportedly bid $6 billion for the company around January 2019, though no deal materialized at that time.

Nvidia's chip technology is quite popular in the video game and cryptocurrency markets, but a crypto slowdown has pressured the company to branch out into new markets.

Acquiring Mellanox allows Nvidia to double down on its data center business. Together, Nvidia's computing platform and Mellanox’s interconnects power over 250 of the world’s TOP500 supercomputers and have as customers every major cloud service provider and computer maker, the two companies indicated this morning.

Customer sales and support will not change as a result of this transaction, the two companies added. The deal is expected to close by the end of calendar year 2019, Nvidia indicated.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.